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A factor of production, whose supply is fixed in the short run, may get additional earnings. These earnings are generally referred to as
Answer & Solution
Correct Answer:
Option
B
A factor of production, whose supply is fixed in the short run, may get additional earnings. These earnings are generally referred to as Quasi-rent. The earnings from machines and instruments are termed as quasi-rent. The quasi-rent refers to the income produced when the demand for products increases suddenly.
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