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Explain the concept of economic rent and how it differs from economic profit?

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Economics

Explain the concept of economic rent and how it differs fromeconomic profit?

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Firstly economic activity is anything which involve the production distribution and consumption of goods and services at all levels ie it primarily deals or talks about money So economic profit is any profitie money earned from any source be it from business entity housing rent profit from various other services etc On the other hand economic rent is a factor of production You make payment for the rent to the owner for the benefits recieved Now profit recieved is a economic profit and the rent you pay is a economic rent Economic profitEP is absolute Economic rentER is relative Economic rent arises    See Answer
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