Determinants of Economic rent or factors affecting the value of economic rent
- Degree of specificity of the factor of production. The higher the degree of specificity of a factor of production, the lower the economic rent and the lower the degree of specificity of a factor of production, the higher the economic rent.
- Level of demand for a factor of production. The higher the demand for a factor of production, the higher the economic rent and the lower the demand for a factor of production the lower the economic rent.
- Degree of substitutability of a factor of production. The higher the degree of substitutability of a factor of production, the lower the economic rent and the lower the degree of substitutability of a factor of production, the higher the economic rent.
- Elasticity of demand for a factor of production. The higher the elasticity of demand, the higher the economic rent and the lower the elasticity of demand, the lower the economic rent
- Elasticity of supply of a factor of production. The higher the elasticity of supply, the lower the economic rent and the lower the elasticity of supply, the higher the economic rent.
CATEGORIES Economics
TAGS Dr. Bbosa Science
Are they only five? If not then it would be better if all of the factors are explained because I understood them well.