Difference between the contract rent and economic rent:-
| S. N. | Basis of difference | Contract rent | Economic rent |
| 1. | Definition | It is the total payment made to the factor owner by the renter according to their mutual agreement. | It is the part of contract rent which is paid to the owner for the use of factor. |
| 2. | Constituents | It consists of economic rent, interest on capital invested in a land like the building, fences, drainage, parking slot. | It does not consist of any other payments. |
| 3. | Source | It can be obtained from all grades of land. | It cannot be obtained from the marginal land. |
| 4. | Change in price | The change in the price of the product does not affect the contract rent. | The change in the price of the product influences the economic rent. |
| 5. | Inclusion of price and cost. | It is included in the price as it is included in the cost of production. | It is not included in the price because it is not included in the cost of production. |
| 6. | Determination | It depends on the demand and supply of land. | It depends on the total product of the land. |
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