Eighth lecture

Resource Rent
The concept of Resource rent was developed and become an important economic term already in classical economics during the 19th century and played an essential role in works by David Ricardo (1772-1823) and Karl Marx (1818-1883).

Initially the term Resource rent was closely related to the use of land. Land was a renewable, but scarce resource. Differences in production capacity of different land areas influence the amount of potential resource rent. In modern economics the term differential rent or intra-marginal rent, is used on differences related to other production factors, while resource rent is reserved the properties of natural resources. By this one differs between the production capacity of the natural resources and our ability to exploit these resources in the most cost efficient way.

Both differential rent and resource rent represent abnormal or super normal profits, similarly to monopoly rent. A common expression of these three types of rent is Economic rent. Economic rent is obtained when the profit earned exceeds the opportunity costs of all input factors.

Some definitions of Resource Rent found on the internet:
Other readings:
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