Question

Plzzz give me a Short note on rent

Answer 1

“Rent is that portion of the produce of earth which is paid to landlord for the use of original and indestructible powers of the soil.”Economic rent is also termed as surplus as it is received by landlord without any effort. Prof. Bounding termed it as “Economic Surplus.” Moreover, modern economists comprising of Mrs. Joan Robinson, Boulding etc. opined that part of the income of each factor can be rent.

Income alone received by land cannot be rent. It is so because different factors have different uses. As such, each factor will be used for that purpose in which its income is maximum. Opportunity cost of a factor for its use in the work yielding maximum income is the price of output that the factor concerned can earn by working in next alternative use.