Explain why economic rent is a surplus payment when viewed by the economy as a whole but a cost of production from the standpoint of individual fifirms and industries. Explain: “Land rent performs no ‘incentive function’ for the overall economy.”

Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
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Chapter16: Public Goods And Public Choice
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Explain why economic rent is a surplus payment when viewed by the economy as a whole but a cost of production from the standpoint of individual fifirms and industries. Explain: “Land rent performs no ‘incentive function’ for the overall economy.”

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