passwella.
Menu

WAEC Economics 2001 Question 3

Question 3

Labour Market

Quasi-rent refers to

  1. A.payment made on acquisition of a firm's premises.
  2. B.payment made for the procurement of tools and equipment
  3. C.returns on investment
  4. D.payment made on any factor of production that is temporarily fixed in supply.
Show the answer and explanation

Answer: D (payment made on any factor of production that is temporarily fixed in supply.)

Explanation

Quasi-rent is the extra earning of a factor whose supply is fixed only in the short run; it disappears when supply can adjust.