[amp_mcq option1=”Adam Smith” option2=”Piguo” option3=”Marshall” option4=”Ricardo” correct=”option3″]<\/p>\n
The correct answer is: C. Marshall<\/strong>.<\/p>\n Quasi rent is a temporary economic rent that arises when a factor of production is in fixed supply. It is the difference between the payment received by the factor and the minimum payment necessary to keep it in its current use.<\/p>\n The concept of quasi rent was first defined by Alfred Marshall in his 1890 book, Principles of Economics. Marshall argued that quasi rent arises when a factor of production is in fixed supply, such as land or natural resources. In this case, the payment received by the factor is determined by its marginal productivity, but the minimum payment necessary to keep it in its current use is zero. The difference between these two payments is the quasi rent.<\/p>\n Quasi rent is an important concept in economics because it helps to explain the distribution of income. In a competitive market, the payment received by a factor of production is equal to its marginal productivity. However, if a factor of production is in fixed supply, the payment received by the factor will be greater than its marginal productivity. This is because the factor can charge a price that is higher than its marginal productivity, as there are no other available substitutes.<\/p>\n Quasi rent can also be used to explain why some people are able to earn high incomes. For example, professional athletes and entertainers are able to earn high incomes because they have unique skills that are in high demand. These individuals are able to charge a price that is higher than their marginal productivity, as there are no other available substitutes.<\/p>\n Quasi rent is a temporary economic rent that arises when a factor of production is in fixed supply. It is the difference between the payment received by the factor and the minimum payment necessary to keep it in its current use. The concept of quasi rent was first defined by Alfred Marshall in his 1890 book, Principles of Economics.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Adam Smith” option2=”Piguo” option3=”Marshall” option4=”Ricardo” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-56100","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n