Difference between revisions of "Economic rent"
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| − | Economic rent is a payment to a seller of a factor of production that is in excess of what the price should be, as measured by the supply price or the opportunity cost. In other words, economic rent is the surplus made by the seller, perhaps due to lack of competition. | + | Economic rent is a payment to a seller of a [[factor of production]] that is in excess of what the price should be, as measured by the supply price or the opportunity cost. In other words, economic rent is the surplus made by the seller, perhaps due to lack of competition. |
Revision as of 06:34, December 22, 2006
Economic rent is a payment to a seller of a factor of production that is in excess of what the price should be, as measured by the supply price or the opportunity cost. In other words, economic rent is the surplus made by the seller, perhaps due to lack of competition.