The income of Lebron James above the minimum payment needed to acquire the type of service he performs is
A)pure profit.
B)economic rent.
C)marginal rent.
D)competitive rent.

Question

Quizplus · Accepted Answer

Economic rent refers to the surplus payment made for a resource or service above and beyond what would be necessary to keep it employed in its current use. In the case of LeBron James, his income would be considered economic rent, as he is paid far more than what would be considered a minimum payment for his services. This payment represents the extra value that he brings to his team and the league, and as such is considered economic rent.

The Income of Lebron James Above the Minimum Payment Needed