Explain the concept of economic rent.
-Suppose you bought 100 acres of farmland, installed an irrigation system, and built a farmhouse. You then rented the property for $5,000 per month. Five years later, you have made no improvements on the land and you raise the rent to $7,000 per month. Does the rent increase represent pure economic rent? Explain why or why not.

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The Answer of Explain the concept of economic rent.
-Suppose you bought 100 acres of farmland, installed an irrigation system, and built a farmhouse. You then rented the property for $5,000 per month. Five years later, you have made no improvements on the land and you raise the rent to $7,000 per month. Does the rent increase represent pure economic rent? Explain why or why not.

Explain the Concept of Economic Rent