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Exactly. To put it simply, rent charged = services sendered + economic rent. This is trivially evidenced by the fact that the landlord can outsource every servi
by andrepd 5y ago
Exactly. To put it simply, rent charged = services sendered + economic rent. This is trivially evidenced by the fact that the landlord can outsource every service he "provides" and still turn up a profit; this amount is the economic rent on capital.
- chii 5y ago> can outsource every service he "provides" and still turn up a profit the outsourcing might increase efficiency of provision of the services due to economies of scale. This efficiency gain is then reflected as the profit.