The idea of "economic rent" can be applied to resources other than land. What is economic rent? The additional "pay" the owner of a resource can earn greater than its "supply price." It's when supply is greater than demand. ○ It applies to apartment rent in large cities where rents are outrageous. OIt refers to ridiculously high taxes on entrepreneurs.

The idea of "economic rent" can be applied to resources other than land. What is economic rent? The additional "pay" the owner of a resource can earn greater than its "supply price." It's when supply is greater than demand. ○ It applies to apartment rent in large cities where rents are outrageous. OIt refers to ridiculously high taxes on entrepreneurs.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter18: Pricing The Factors Of Production

Section: Chapter Questions

Problem 4TY

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