A firm can capture value through market power or through superior factors of production.The rent earned through the use of superior factors of production is
A)housing rent.
B)monopoly rent.
C)Ricardian rent.
D)Bushian rent.

Question

Quizplus · Accepted Answer

The rent earned through the use of superior factors of production is known as Ricardian rent, named after economist David Ricardo. It is a result of the differential productivity of land, and is earned by individuals or firms that control access to land with superior qualities for production. Housing rent is a type of payment made for the use of land or property for residential purposes, and Bushian rent is not a recognized economic term. Monopoly rent is a type of rent earned through market power, not through superior factors of production.

A Firm Can Capture Value Through Market Power or Through