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Surplus earned by a factor other than land in the short period is referred to as
- a)economic rent
- b)net rent
- c)quasi-rent
- d)super-normal rent
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Surplus earned by a factor other than land in the short period is refe...
Option C is correct : Quasi rent
The concept of Quasi rent was introduced in Economics by Dr. Alfred Marshall. This concept is used for the surplus earned by man-made factors other than land. Certain man-made factors become scarce in the short run. The surpluses earned by using these factors go to constitute Quasi rent.Free Test
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Surplus earned by a factor other than land in the short period is refe...
Surplus earned by a factor other than land in the short period is referred to as quasi-rent.
Quasi-rent is a concept in economics that refers to the surplus earned by a factor of production other than land in the short period. It is a temporary phenomenon that arises when the supply of a factor of production is fixed in the short run and the demand for that factor increases.
Explanation:
In order to understand the concept of quasi-rent, it is important to understand the concepts of economic rent and normal rent.
Economic Rent:
Economic rent refers to the surplus earned by a factor of production (such as land, labor, or capital) above the minimum amount required to bring that factor into production. It is the difference between the actual earnings of a factor and its opportunity cost.
Normal Rent:
Normal rent refers specifically to the surplus earned by the factor of production land. It is the payment made to the owner of land for its use in production. Normal rent is a form of economic rent that is specifically associated with land.
Quasi-Rent:
Quasi-rent, on the other hand, refers to the surplus earned by a factor of production other than land in the short period. It is a temporary phenomenon that arises when the supply of a factor is fixed in the short run and the demand for that factor increases. Unlike economic rent, which is based on the long-run equilibrium conditions, quasi-rent is a short-run concept.
Key Points:
- Quasi-rent is a surplus earned by a factor of production other than land in the short period.
- It is a temporary phenomenon that arises when the supply of a factor is fixed and the demand for that factor increases in the short run.
- Quasi-rent is distinct from economic rent and normal rent.
- Economic rent refers to the surplus earned by a factor of production above its opportunity cost, while normal rent specifically refers to the surplus earned by land.
- Quasi-rent is a short-run concept and is not based on long-run equilibrium conditions.
Overall, quasi-rent is an important concept in economics that helps to explain the temporary surplus earned by factors of production other than land in the short run. It is a concept that is distinct from economic rent and normal rent and provides insights into the dynamics of factor markets in the short period.
Quasi-rent is a concept in economics that refers to the surplus earned by a factor of production other than land in the short period. It is a temporary phenomenon that arises when the supply of a factor of production is fixed in the short run and the demand for that factor increases.
Explanation:
In order to understand the concept of quasi-rent, it is important to understand the concepts of economic rent and normal rent.
Economic Rent:
Economic rent refers to the surplus earned by a factor of production (such as land, labor, or capital) above the minimum amount required to bring that factor into production. It is the difference between the actual earnings of a factor and its opportunity cost.
Normal Rent:
Normal rent refers specifically to the surplus earned by the factor of production land. It is the payment made to the owner of land for its use in production. Normal rent is a form of economic rent that is specifically associated with land.
Quasi-Rent:
Quasi-rent, on the other hand, refers to the surplus earned by a factor of production other than land in the short period. It is a temporary phenomenon that arises when the supply of a factor is fixed in the short run and the demand for that factor increases. Unlike economic rent, which is based on the long-run equilibrium conditions, quasi-rent is a short-run concept.
Key Points:
- Quasi-rent is a surplus earned by a factor of production other than land in the short period.
- It is a temporary phenomenon that arises when the supply of a factor is fixed and the demand for that factor increases in the short run.
- Quasi-rent is distinct from economic rent and normal rent.
- Economic rent refers to the surplus earned by a factor of production above its opportunity cost, while normal rent specifically refers to the surplus earned by land.
- Quasi-rent is a short-run concept and is not based on long-run equilibrium conditions.
Overall, quasi-rent is an important concept in economics that helps to explain the temporary surplus earned by factors of production other than land in the short run. It is a concept that is distinct from economic rent and normal rent and provides insights into the dynamics of factor markets in the short period.
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Surplus earned by a factor other than land in the short period is referred to asa)economic rent b)net rent c)quasi-rent d)super-normal rentCorrect answer is option 'C'. Can you explain this answer?
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