Economic Rent and Contract Rent

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Economic Rent and Contract  Rent 
The payment that an agriculturist tenant actually makes to the landlord is not ncccssarily equal to this economic rent. A parl of this payment may consist of interest on capital invested in the land by the owner in the form of buildings. fences, drainage, wells, etc. That part of the payment which is made for the use of land only  ecullumit’ rent and the total payment made by a tenant to the landlord is called contract rent.

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Economic Rent and Contract Rent