14 - 1 Economic Rent Determination of Land Rent Loanable Funds Theory of Interest Range of Interest...

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14 - 1 Economic Rent Determinati on of Land Rent Loanable Funds Theory of Interest Range of Interest Rates Economic Profit Rent, Interest, and Profit

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Transcript of 14 - 1 Economic Rent Determination of Land Rent Loanable Funds Theory of Interest Range of Interest...

Page 1: 14 - 1 Economic Rent Determination of Land Rent Loanable Funds Theory of Interest Range of Interest Rates Economic Profit Rent, Interest, and Profit.

14 - 1

Economic Rent

Determination of Land Rent

Loanable Funds Theory of Interest

Range of Interest Rates

Economic Profit

Rent, Interest, and Profit

Page 2: 14 - 1 Economic Rent Determination of Land Rent Loanable Funds Theory of Interest Range of Interest Rates Economic Profit Rent, Interest, and Profit.

14 - 2

Economic Rent

Determination of Land Rent

Loanable Funds Theory of Interest

Range of Interest Rates

Economic Profit

Rent

• Price paid for land and other natural resources

• Perfectly inelastic supply

Page 3: 14 - 1 Economic Rent Determination of Land Rent Loanable Funds Theory of Interest Range of Interest Rates Economic Profit Rent, Interest, and Profit.

14 - 3

Economic Rent

Determination of Land Rent

Loanable Funds Theory of Interest

Range of Interest Rates

Economic Profit

RS

DETERMINATION OF LAND RENTChanges in the demand for land...

Inelastic Supply...

Q

Page 4: 14 - 1 Economic Rent Determination of Land Rent Loanable Funds Theory of Interest Range of Interest Rates Economic Profit Rent, Interest, and Profit.

14 - 4

Economic Rent

Determination of Land Rent

Loanable Funds Theory of Interest

Range of Interest Rates

Economic Profit

Acres of Land

S

DETERMINATION OF LAND RENTChanges in the demand for land...

Inelastic Supply...combines withdemand...

D1

Q

R

Page 5: 14 - 1 Economic Rent Determination of Land Rent Loanable Funds Theory of Interest Range of Interest Rates Economic Profit Rent, Interest, and Profit.

14 - 5

Economic Rent

Determination of Land Rent

Loanable Funds Theory of Interest

Range of Interest Rates

Economic Profit

R1

Acres of Land

S

DETERMINATION OF LAND RENTChanges in the demand for land...

Inelastic Supply...combines withdemand...

D1

to determine rent

Q

R

Page 6: 14 - 1 Economic Rent Determination of Land Rent Loanable Funds Theory of Interest Range of Interest Rates Economic Profit Rent, Interest, and Profit.

14 - 6

Economic Rent

Determination of Land Rent

Loanable Funds Theory of Interest

Range of Interest Rates

Economic Profit

Acres of Land

R1

S

D2

D1R2

If demand decreases...

DETERMINATION OF LAND RENTChanges in the demand for land...

rent decreases.

Q

R

Page 7: 14 - 1 Economic Rent Determination of Land Rent Loanable Funds Theory of Interest Range of Interest Rates Economic Profit Rent, Interest, and Profit.

14 - 7

Economic Rent

Determination of Land Rent

Loanable Funds Theory of Interest

Range of Interest Rates

Economic Profit

D3

Acres of Land

R1

S

D2

D1R2

R3

If demand decreases...rent decreases. ...and decreases

DETERMINATION OF LAND RENTChanges in the demand for land...

Q

R

Page 8: 14 - 1 Economic Rent Determination of Land Rent Loanable Funds Theory of Interest Range of Interest Rates Economic Profit Rent, Interest, and Profit.

14 - 8

Economic Rent

Determination of Land Rent

Loanable Funds Theory of Interest

Range of Interest Rates

Economic Profit

D3

Acres of Land

R1

S

D4

D2

D1R2

R3

If demand decreases...rent decreases. ...and decreases

DETERMINATION OF LAND RENTChanges in the demand for land...

...and decreases ...and decreases

Q

R

Page 9: 14 - 1 Economic Rent Determination of Land Rent Loanable Funds Theory of Interest Range of Interest Rates Economic Profit Rent, Interest, and Profit.

14 - 9

Economic Rent

Determination of Land Rent

Loanable Funds Theory of Interest

Range of Interest Rates

Economic Profit

D3

Acres of Land

R1

S

D4

D2

D1R2

R3

DETERMINATION OF LAND RENTChanges in the demand for land...

If demand is so lowthat there is no rentdetermined, land issaid to be a free good,commanding no rent.

Q

R

Page 10: 14 - 1 Economic Rent Determination of Land Rent Loanable Funds Theory of Interest Range of Interest Rates Economic Profit Rent, Interest, and Profit.

14 - 10

Economic Rent

Determination of Land Rent

Loanable Funds Theory of Interest

Range of Interest Rates

Economic Profit

Productivity Differences(Location, Location, Location)

LAND RENT

Page 11: 14 - 1 Economic Rent Determination of Land Rent Loanable Funds Theory of Interest Range of Interest Rates Economic Profit Rent, Interest, and Profit.

14 - 11

Economic Rent

Determination of Land Rent

Loanable Funds Theory of Interest

Range of Interest Rates

Economic Profit

INTERESTThe Price Paid for Capital•It is the payment to use money

•Money is not a Resource

Rate Determination...

Page 12: 14 - 1 Economic Rent Determination of Land Rent Loanable Funds Theory of Interest Range of Interest Rates Economic Profit Rent, Interest, and Profit.

14 - 12

Economic Rent

Determination of Land Rent

Loanable Funds Theory of Interest

Range of Interest Rates

Economic Profit

I

Q of LF

LOANABLE FUNDSTHEORY OF INTEREST

i = 8%

D

F0

S

Page 13: 14 - 1 Economic Rent Determination of Land Rent Loanable Funds Theory of Interest Range of Interest Rates Economic Profit Rent, Interest, and Profit.

14 - 13

Economic Rent

Determination of Land Rent

Loanable Funds Theory of Interest

Range of Interest Rates

Economic Profit

INTEREST RATES

Role of the Interest Rate•Growth•Allocation of Capital•R&D Spending

Nominal and Real Interest RatesNominal – Inflation = Real

Page 14: 14 - 1 Economic Rent Determination of Land Rent Loanable Funds Theory of Interest Range of Interest Rates Economic Profit Rent, Interest, and Profit.

14 - 14

Economic Rent

Determination of Land Rent

Loanable Funds Theory of Interest

Range of Interest Rates

Economic Profit

Economic Profit

• Payment to entrepreneurs

• Functions of economic profit

Page 15: 14 - 1 Economic Rent Determination of Land Rent Loanable Funds Theory of Interest Range of Interest Rates Economic Profit Rent, Interest, and Profit.

14 - 15

Economic Rent

Determination of Land Rent

Loanable Funds Theory of Interest

Range of Interest Rates

Economic Profit

Share of Income

• Wages receive 70-80%• The rest is rent, interest, &

profit


Rent your car and profit

Rent your car and profit

Riba Interest Profit

Riba Interest Profit

Fetter - Capital, Interest and Rent ~

Fetter - Capital, Interest and Rent ~

Maximizing PPP Loan Forgiveness · 2020-05-12 · Forgiveness amount is also based on the net profit reported on your 2019 Form Schedule C plus rent, ... any prepayment of interest

Maximizing PPP Loan Forgiveness · 2020-05-12 · Forgiveness amount is also based on the net profit reported on your 2019 Form Schedule C plus rent, ... any prepayment of interest

Chapter 29 Rent, Interest and Profit. Economic Rent To the business executive “rent” is a payment made for the use of a building, machine, or warehouse.

Chapter 29 Rent, Interest and Profit. Economic Rent To the business executive “rent” is a payment made for the use of a building, machine, or warehouse.

Flurscheim Michael - Rent, Interest and Wages or the Real Bearings of the Land Question - Private Rent the Mother of Interest - The Cause of Commercial Depressions and Social Misery

Flurscheim Michael - Rent, Interest and Wages or the Real Bearings of the Land Question - Private Rent the Mother of Interest - The Cause of Commercial Depressions and Social Misery

Rent, Interest, and Profit Chapter 29 McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Rent, Interest, and Profit Chapter 29 McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Rent, Interest, and Profit Chapter 14 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Rent, Interest, and Profit Chapter 14 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Fetter - 1939 - Capital, Interest, And Rent (Lo-fi)

Fetter - 1939 - Capital, Interest, And Rent (Lo-fi)

68 | ONERRES 6 - COUNTERFUTURES · 2019-05-01 · 68 | ONERRES 6 This paper advances the case for the abolition of rent, interest, and profit. Rent, interest, and profit often appear

68 | ONERRES 6 - COUNTERFUTURES · 2019-05-01 · 68 | ONERRES 6 This paper advances the case for the abolition of rent, interest, and profit. Rent, interest, and profit often appear

questionpapers.spmcollege.ac.in...iii) Allow interest on capital 12% p.a. iv) Rent prepaid? 1 ,000. Prepare statement showing profit or loss as on 31-3-14 and Revised statement on

questionpapers.spmcollege.ac.in...iii) Allow interest on capital 12% p.a. iv) Rent prepaid? 1 ,000. Prepare statement showing profit or loss as on 31-3-14 and Revised statement on

MICROECONOMICS: Theory & Applications Chapter 17 Wages, Rent, Interest, and Profit By Edgar K. Browning & Mark A. Zupan John Wiley & Sons, Inc. 9 th Edition,

MICROECONOMICS: Theory & Applications Chapter 17 Wages, Rent, Interest, and Profit By Edgar K. Browning & Mark A. Zupan John Wiley & Sons, Inc. 9 th Edition,

© 2005 Thomson C hapter 17 Interest, Rent, and Profit.

© 2005 Thomson C hapter 17 Interest, Rent, and Profit.

+ Commission, Simple Interest, Markup, Profit Week 13.

+ Commission, Simple Interest, Markup, Profit Week 13.

Chapter 30 Rent, Interest, and Profit 30-1 Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 30 Rent, Interest, and Profit 30-1 Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Four Factors of Production Labor Land Capital Payments to Factors of Production Interest Wage Rent Profit Entrepreneurship.

Four Factors of Production Labor Land Capital Payments to Factors of Production Interest Wage Rent Profit Entrepreneurship.

Chapter 29 Rent, Interest and Profit

Chapter 29 Rent, Interest and Profit

Any loan that draws profit/interest is usury

Any loan that draws profit/interest is usury

14 Rent, Interest, and Profit McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

14 Rent, Interest, and Profit McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Table of Contents · COGS 15,000 Gross profit 10,000 Expenses 4,700 Net profit before interest and tax 5,300 Interest 1,000 Tax 860 Net profit after interest and tax 3,440

Table of Contents · COGS 15,000 Gross profit 10,000 Expenses 4,700 Net profit before interest and tax 5,300 Interest 1,000 Tax 860 Net profit after interest and tax 3,440