In this article we will discuss about the quasi-rent by Marshall. Sometimes it is observed that the price-elasticity of supply (e) of an input is less than infinity (0 < e < ā) in the short run, but in the long run, its supply becomes perfectly elastic (e = ā) and that is why the input is able to earn [...]
The below mentioned article provides study notes on Quasi-Rent. The term quasi-rent was coined by Alfred Marshall. Economic rent, as defined by Ricardo and modern economists, is a long run reward to any input, including land. In the short run, some inputs are fixed and some are variable. But in the long run all inputs are variable. Economic rent persists [...]
Quasi-Rent in Economics: The concept of economic rent has arisen because the supply of factors of production is not perfectly elastic. The more inelastic the supply of a factor, the greater will be the element of economic rent in the income earned that factor. Ricardo discussed the concept of economic rent in relation to land because land, in total, has [...]