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Commerce · Q909

Economics

Graduate and Post Graduate · Commerce · question 909

Q909

Rent earned by a factor of production equals

A.
what this factor can earn in its next best use
B.
the sum of what this factor earns in its current use and what it can earn in its next best use
C.
its current earnings
D.
the difference between what this factor is currently earning and what it can earn in its next best use
Answer

Answer: Option D

Solution

Answer: Option D
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