economic rent

economic rent definition - business

economic rent

The difference between the cost of a factor of production and the amount that would have to be paid for continued availability of the factor. For example, an NBA center of modest talent earns $7 million per year when he would gladly do the same job for $500,000. His economic rent is $6.5 million. Also called rent.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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