--- Harland Harrison <[EMAIL PROTECTED]> wrote: > Why do you say a producer surplus is only "land > rent"?
In a monopoly or oligopoly, some of the surplus is monopoly profit, but in competitive industries, firms make only normal profits usually, and the surplus would be a higher than normal profit. > Higher sale prices > benefit almost every input to an industry, including > wages from labor and > profit from capital. If labor in one industry gets higher than normal wages, then workers will move in, expand the supply, and drive the wage back down to normal. > Entrepreneurs must bid for > workers, intellectual > property, and other inelastic resources, just as > they bid for real estate. But labor and capital goods can exand, while it is very difficult to import land or to build a land factory. Fred Foldvary
