Modern Theory of Rent:
In modern theory of rent, the word rent refers to “payments made for factors of production that are in imperfectly elastic supply”.
By this definition, rent is exerted to other factors such as labor and capital. In another words, rent does not exert to land alone. Just as land varies in fertility, men vary in their ability. For illustration, a surgeon with a rare skill might earn a lot of income. There is an element of rent in it. In fact, we have a theory of profits termed as “Rent theory of profits”.
Marshall has mentioned the concept of “Quasi-rent” with regard to machines and other man-made appliances. Therefore the modern view is that rent can be exerted to all factors of production. If, the supply of a factor is inelastic in relation to the demand for it, rent takes place.
To elucidate rent, modern economists also make utilizations of the word transfer earnings. Transfer earnings refer to the quantity that a factor could earn in its finest paid alternative employment. It symbolizes the opportunity cost of its current employment. Any payment in surplus of this amount is an excess above what is essential to retain the factor in its best-paid employment and thus is rent. Therefore, any payment in surplus of transfer earnings is economic rent. When a popular actor who is normally paid, say $ 2 crores, gets an offer to act in a another film for $ 3 three crores, his transfer earnings are $ 2 crores. $ 1crore might be considered as economic rent for acting in another film. Hence the main point regarding the modern theory of rent is that rent is not weird to land alone. The rent feature can be seen in other factor incomes also.
Latest technology based Economics Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Marginal Productivity help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Marginal Productivity, project ideas and tutorials. We provide email based Marginal Productivity help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Marginal Productivity. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Economics Homework help and assignment help services. They use their experience, as they have solved thousands of Economics assignments, which may help you to solve your complex issues of Marginal Productivity. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
Finish off your complex tasks and achieve academic success with Historiography in Art History Assignment Help.
www.tutorsglobe.com offers Common Problems with SRS homework help, assignment help, case study, writing homework help, online tutoring assistance by computer science tutors.
www.tutorsglobe.com offers free tutorial on determining price rigidity, answering questions based on price rigidity, oligopoly assignment help- homework help.
tutorsglobe.com role of bio fertilizers assignment help-homework help by online biology in human welfare tutors
tutorsglobe.com heart block assignment help-homework help by online circulation tutors
tutorsglobe.com redox potential assignment help-homework help by online redox couple tutors
The issued share capital or allotted share capital is share capital that has been issued to shareholders.
tutorsglobe.com composting methods assignment help-homework help by online recycling of waste tutors
tutorsglobe.com types of normal flora assignment help-homework help by online normal flora of the body tutors
Damped Harmonic Motion tutorial all along with the key concepts of restoring force, damping force, instantaneous velocity of oscillator, Solutions of differential equation, Heavy Damping, Critical Damping, Logarithmic Decrement, Relaxation Time
grab the chance to score maximum grades with superb electrical engineering assignment help at reasonable price range.
tutorsglobe.com site of photosynthesis assignment help-homework help by online photosynthesis tutors
the professional classical physics assignment help service encompasses a panel of apt tutors with 24/7 support & ensure top grades.
Modern Physics tutorial all along with the key concepts of Photon and the Atom, Bohr Atom, X-rays, X-ray Spectra, X-ray Tube, Nature and Properties of X-rays and Uses of X-rays
tutorsglobe.com venation assignment help-homework help by online leaf tutors
1957586
Questions Asked
3689
Tutors
1496109
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!