Economic rent is that portion of a resource's total earnings that exceeds its opportunity cost.

Name: Economic rent is that portion of a resource's total earnings that exceeds its opportunity cost.
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Question

Quizplus · Accepted Answer

Economic rent is a surplus over and above what is necessary to keep the resource in its current use. It is the excess of the resource's total earnings over its opportunity cost. Therefore, the statement is true.

Economic Rent Is That Portion of a Resource's Total Earnings