Q132
A factor of production, whose supply is fixed in the short run, may get additional earnings. These earnings are generally referred to as
A.
Surplus value
B.
Quasi-rent
AnswerC.
Transfer earnings
D.
Super normal profits
Answer: Option B
Solution
Answer: Option B
Solution:
A factor of production, whose supply is fixed in the short run, may get additional earnings. These earnings are generally referred to as Quasi-rent. The earnings from machines and instruments are termed as quasi-rent. The quasi-rent refers to the income produced when the demand for products increases suddenly.