Quasi Rent as a Short-Term Phenomenon:

Quasi rent refers to the surplus income earned by the owner of a fixed asset, which is above the minimum amount required to keep the asset in its current use.

Explanation:

- Quasi rent is a short-term phenomenon because it arises due to the temporary scarcity of a fixed asset in a specific location or period.
- It is not a permanent surplus income because as soon as new firms enter the market or new assets are built, the quasi rent disappears.
- Quasi rent is a result of the demand and supply conditions of a specific location or period, and it can be earned by any owner of a fixed asset, whether it is land, property, machinery, or equipment.
- For example, if the demand for residential housing increases in a particular city, the owners of existing housing units can earn quasi rent by charging higher rents than before.
- Similarly, if the demand for a particular type of machinery increases in a specific industry, the owners of that machinery can earn quasi rent by charging higher prices for renting or leasing it.
- However, if new housing units or machinery is built or imported, the quasi rent earned by the existing owners will disappear, and they will have to compete with the new entrants in the market.

Conclusion:

In conclusion, quasi rent is a short-term phenomenon that arises due to the temporary scarcity of a fixed asset in a specific location or period. It is not a permanent surplus income and can disappear as soon as new assets are built or new firms enter the market.