Question

Economic rent is a surplus payment when viewed by the economy as a whole but a cost of production from the standpoint of individual firms and industries. this is because

Answer 1

Here is the answer that best completes the given statement above. Economic rent is a surplus payment when viewed by the economy as a whole but a cost of production from the standpoint of individual firms and industries. This is because the supply of land does not respond to changes in rent, but in order to use the land profitably, revenue must cover the rental payments.