Economic rent: Difference between revisions
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==Definition== | ==Definition== | ||
'''Economic rent''' is defined as the price that a [[ | '''Economic rent''' is defined as the price that a [[factor of production]] is paid for use, ''over and above'' the [[opportunity cost]]. | ||
The economic rent of a producer is termed the [[producer surplus]]. The sum of economic rents captured by all factors of production in a firm is termed its [[economic profit]]. | |||
Latest revision as of 22:17, 18 June 2009
Definition
Economic rent is defined as the price that a factor of production is paid for use, over and above the opportunity cost.
The economic rent of a producer is termed the producer surplus. The sum of economic rents captured by all factors of production in a firm is termed its economic profit.