2. Define the economic rent and commercial rent . Give example also on it. Types of Rent1. Economic Rent. The portion of theearnings of a factor of production thatcreates/yields another factor ofproductionM ماكدونالدز MSIEGE FLER1002. Commercial Rent. The payment for theuse of a factory or a building plus theland on which it stands. (Commercialrent in this case includes land rent.)

A payment that is made to a factor of production known as economic rent is greater than what is…

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2. Define the economic rent and commercial rent . Give example also on it.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 2SCQ: Continuing from Exercise 7.1, the films factory sits on land owned by the firm that it could rent...

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Concept explainers

Explicit and Implicit Cost Analysis

The entire idea of the cost of production or production cost is applied corresponding or we can say that it is related to money cost. Money cost refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factors of production or factor services.

Question

2. Define the economic rent and commercial rent . Give example also on it.

Types of Rent
1. Economic Rent. The portion of the
earnings of a factor of production that
creates/yields another factor of
production
M ماكدونالدز M
SIEGE FLER
100
2. Commercial Rent. The payment for the
use of a factory or a building plus the
land on which it stands. (Commercial
rent in this case includes land rent.)

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