Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
3.6k views
in Economics by (46.2k points)
closed by

Discuss four differences between rent and quasi rent.

1 Answer

+1 vote
by (49.5k points)
selected by
 
Best answer

(i) Rent is earned by the free gifts of nature such as land. But Quasi-rent is the excess income earned by the man-made factors.

(ii) Rent is earned both in short-run and long run. While Quasi-rent occurs only in short-run because, in the long run, man-made factors have their perfectly elastic supply. 

(iii) Rent is permanent earning while Quasi-rent is transitory. In other words. Quasirent is not a cost in a short period. 

(iv) Rent is never zero. But Quasi-rent becomes zero when the price is equal to average variable costs. 

(v) Rent is the difference between total earnings and total costs. But Quasi-rent is the difference between total earnings and variable costs.

Related questions

0 votes
1 answer
0 votes
1 answer
0 votes
1 answer

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...