Economic Rent

Dictionary Says

Definition of 'Economic Rent'

The amount of money an owner of a factor of production must receive in order for that owner to rent out that factor of production. Factors of production include labor, capital and land.
Investopedia Says

Investopedia explains 'Economic Rent'

Economic rent is the minimum amount of money that some owner must receive in order to use an asset for a given purpose. In labor terms, it is the reservation wage of the individual, which is the minimum amount of wages that the person must receive in order to work. In capital and land terms, economic rent is the amount of money needed to breakeven when either land or capital is used for any given purpose.

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