Re: Example economic rent calculation

On 24 Oct 2005 16:47:37 -0700, jim_bowery@xxxxxxxxxxx wrote:

>So how would you rewrite the following Wikipedia article?

I'd start by identifying a more useful definition for "rent," which
would change everything else.

>http://en.wikipedia.org/wiki/Economic_rent
>
>In economic theory, economic rent is an analytic term employed to
>distinguish the difference between the income earned by an input or
>factor of production, and the cost of the factor of production. A
>factor of production can be put to various and alternative economic
>uses; the income earned by (or price paid for) a factor in its current
>use may be more than what is minimally necessary to draw the factor
>into its current use; one can imagine the price paid for the factor
>falling to a level at which the factor would be transferred to its next
>best use -- that price, the income earned in its next best use, is the
>opportunity cost of the factor. The difference between the opportunity
>cost and the income earned in its present use is a rent.

-- Roy L
.

Relevant Pages

  • Re: novel argument against taxing rents
    ... confused ideas about rent. ... yield less the marginal cost. ... distribution" hold that all of every _production_ factor is ... What does "the margin" mean if there is ...
    (sci.econ)
  • Re: Dont Forget Mises -- and Dump the Third Way!
    ... Where did I say anything about production costs dropping? ... >> Production costs are not affected by the displacement of the rent from ... >Producers initially had to pay rent for the land. ...
    (sci.econ)
  • Re: More Anarchism with Roy L
    ... >> return to capital, because their full value must be paid out in rent, ... >made to support the private ownership of the lot itself, ... >>>Land is an input to production, as such, it's value is part of the ...
    (sci.econ)
  • Re: Is this an allowable deduction?
    ... or that the rental income is more than the ... They both cost the same new, ... Suppose you were to buy a flat to rent out. ... appliance or similar, I think I will go for the WTA route, to receive ...
    (uk.business.accountancy)
  • Re: Is this an allowable deduction?
    ... or that the rental income is more than the ... They both cost the same new, ... Suppose you were to buy a flat to rent out. ... then you deduct utilities and council tax to arrive ...
    (uk.business.accountancy)