In the diagram above, the economic rent is represented by

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Economic rent is the difference between the actual earnings of a resource or factor of production and its minimum earnings necessary to keep it in its present use. In the diagram above, economic rent is represented by the area B. This is because it is the difference between the market price of the resource (the vertical distance between the supply curve and the demand curve) and the minimum price at which it would be supplied (the horizontal distance between the supply curve and the y-axis). The other areas do not represent economic rent. Area A represents consumer surplus and areas B and C together represent producer surplus.

In the Diagram Above, the Economic Rent Is Represented by