Answer to Question #255760 in Microeconomics for emma

Question

Discuss the main features of the Ricardian Theory of Rent. How do these contrast with the Modern Theory of Rent?

Answer 1

The following are the essential characteristics of the Ricardian Concept of Lease: I Rent is solely payable to property.

ii) Rent is the fee reimbursed for the utilization of the soil's natural and irreversible properties.

iii) Rent is a discriminatory excess or the disparity between the outstanding and negligible properties' production.

Rent can occur concerning any resource of creation, not just land, according to the Modern Theory of Rent. Rent is an overabundance. Rent is a payment that exceeds transfer profits in the meaning of overflow.