There are two types of economic rent (pure profit):
A)Monopoly rent and Ricardian rent
B)Market power and competitive advantage
C)Monopoly rent and quasi rent
D)Cost advantage and differentiation advantage

Question

Quizplus · Accepted Answer

Monopoly rent refers to the extra income a firm earns due to a lack of competition, while Ricardian rent is derived from the possession of a scarce resource with no close substitutes, making these the two types of economic rent (pure profit).

There Are Two Types of Economic Rent (Pure Profit)