Classical Factor Rent
Classical factor rent is primarily concerned with the fee paid for the use of fixed (e.g. natural) resources. The classical definition is expressed as any excess payment above that required to induce or provide for production.
- "A payment for the services of an economic resource which is not necessary as an incentive for its production"
- "Any payment that does not affect the supply of the input"
- "A payment to any factor in perfectly inelastic supply"
Read more about this topic: Economic Rent
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