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Therefore the gap between Demand and

Supply is generated and production factor


earns supernatural rent.
However when supply of factor increases in
long run or when demand comes down the
supernormal rent gets disappeared.
Thus as it is a temporary or tentative rent it is
called Quasirent .

The Modern Theory


In economics ,whenever unit of a factor of
production is receiving an income greater than
the minimum amount necessary to induce that
factors to remain in its present occupation ,the
surplus of receipt over its minimum supply
price, may be called an Economic rent .
--- Meyers

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