This article will help you to learn about the differences and similarities between rent and quasi-rent.
Difference between Rent and Quasi-Rent (With Similarities)
Similarities between Rent and Quasi-Rent:
1. Rent and Quasi-rent are differential incomes and both arise because the demand is more than the suply.
2. With the increase or decrease in the demand, the rent and the quasi-rent both increase or decrease.
3. Rent arises because of inelastic supply of land where as quasi-rent arises because of inelastic supply of man-made capital goods.
4. Rent and Quasi-Rent has great significance in the short-period.
Differences between Rent and Quasi-Rent:
1. Rent arises from land and other free gifts of nature whereas the quasi-rent arises from the man-made capital equipment.
2. Rent arises both in short and long-period whereas the quasi-rent arises only in the short-period.
3. Rent is permanent whereas quasi-rent is temporary.
4. Rent is an unearned income whereas quasi-rent is an essential payment.
5. Rent cannot be zero whereas quasi-rent can be zero.
6. Rent is associated with Prof. David Ricardo whereas quasi-rent is associated with Prof. Alfred Marshall.