Difference between rent and quasi - rent?

Answer 1

1. Rent is a payment for natural gifts of nature like land. Quasi rent is a payment for man made appliances like machines.

1. As the supply of land cannot be changed, rent persists in both short run and long run. But quasi rent is a short run phenomenon which disappears in the long run when the supply of man made goods is increased.

1. Rent is permanent in nature while quasi rent is a temporary phenomenon.

1. Rent is the disparity amidst total revenue and total costs. Conversely, quasi rent is difference between total revenue variable costs.

1. Some economists regarded rent as unearned income. But quasi rent is a necessary payment which all factors of production receive due to their inelastic supply in the short run.

1. Ricardo's rent arises due to differences in fertility of land. Marshall's quasi rent arises due to the scarcity of man made appliances in the short run.

1. Rent cannot be zero but quasi rent can be zero when the short run price of the commodity equals its average variable cost.