Economic rent is

Question

Economic rent is

Quizplus · Accepted Answer

Economic rent is any earnings or income that is over and above the minimum required for a factor of production or a service to be offered. This can be in the form of surplus income earned by individuals or companies due to a scarcity of resources or high demand for a good or service. It is not the same as economic profit (A) which is the difference between total revenue and total cost, including both implicit and explicit costs, nor is it the difference between accounting profit and economic profit (B). Economic rent is also not the amount paid to lease factory or machinery (C) as this is a fixed cost of production. Furthermore, economic rent is not earnings in excess of the maximum necessary for a good or service to be produced (E) as this concept doesn't exist in economic theory.

Economic Rent Is