Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. economics
  3. explain the concept of economic rent and how it di

Explain the concept of economic rent and how it differs from economic profit?

60.1K

Verified Solution

Question

Economics

Explain the concept of economic rent and how it differs fromeconomic profit?

Answer & Explanation Solved by verified expert
4.1 Ratings (451 Votes)
Firstly economic activity is anything which involve the production distribution and consumption of goods and services at all levels ie it primarily deals or talks about money So economic profit is any profitie money earned from any source be it from business entity housing rent profit from various other services etc On the other hand economic rent is a factor of production You make payment for the rent to the owner for the benefits recieved Now profit recieved is a economic profit and the rent you pay is a economic rent Economic profitEP is absolute Economic rentER is relative Economic rent arises    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

3).A political poll estimates that 48% of Democrat voters will vote for Elizabeth Warren in the...

Statistics
Q

an island in San Francisco Bay that was the chief immigration station on the western...

Biology
Q

Find the number of ways six cards of the same suit can be drawn from...

Basic Math
Q

The flight of a cannonball toward a hill is described by the parabola y 2...

Basic Math
Q

charleston affair currently sells 1,000 units of product z for $64.50 and expects the price...

Accounting
Q

Reddy Corporation reported the following accounts and amounts (in millions) In its financial statements for...

Accounting
Q

The long-term liability section of Northwest Corporation's balance sheet as of December 31, 2020, included...

Accounting
Q

INTERMEDIATE ACCOUNTING (ACCT 301/30 CALCULATOR STANDARD VIEWPRINTER VERSION K BACK Waterway Company's record of transactions...

Accounting
Q

lete this question by entering your answers in the tabs below. The Elberta Fruit Farm...

Accounting
Q

Required information [The following information applies to the questions displayed below.] Laker...

Accounting
Q

You are considering launching an app to connect all household appliances to the mobile phone....

Finance
Q

Nagy Industries reported a net income of $689,369 on December 31, 2021. At the beginning...

Accounting