Encyclopedia > Economic rent

Article Content

Economic rent

In economic theory, economic rent is a payment to a factor of production in excess of that which is needed to keep it employed in its current use.

For example, if someone is earning $20,000 for a job, and the next best job pays $15,000, then the economic rent is the difference between the two of $5,000.

All Wikipedia text is available under the terms of the GNU Free Documentation License

Search Encyclopedia

Search over one million articles, find something about almost anything!

Featured Article

Shoreham, New York

... and the median income for a family is $116,985. Males have a median income of $81,873 versus $31,250 for females. The per capita income for the village is $37,620. 1.4% ...