In an input market,economic rent is defined as
A)the total remuneration paid to a factor of production.
B)the minimum amount required to retain a factor of production in its present use.
C)the total cost for a firm of renting land,equipment,and buildings.
D)the extent to which payments to a factor of production exceed the minimum amount required to retain it in its present use.

Question

Quizplus · Accepted Answer

Economic rent is the difference between the amount paid for a factor of production and the minimum amount required to retain it in its current use. It is the surplus payment made to a factor of production beyond what is needed to keep it in its current use.

In an Input Market,economic Rent Is Defined as