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in Class 12 by kratos

What is economic rent? Can factors other than land also earn rent? Explain briefly.

1 Answer

+4 votes
by kratos
 
Best answer

According to classical economists economic rent is the payment for the use of land only. But according to the modern economists, rent is paid not only to land but to all the factors of production. According to them, it is the payment to any factor of production over and above the minimum price (transfer earnings), which it must get.

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