A measurement of land profitability, economic rent is a payment (rent) over and above that which is necessary to stay in business. Economic rent R, is given as:
where
Q is the quantity of production (as in kilos of grain per hectare),
p is market price per unit, and
c is the cost per unit of production (E. Sheppard 2008). Economic rent is not synonymous with profit, since opportunity cost (the cost of choosing one alternative good or service in terms of the sacrifice of the next best alternative) is built into the concept. See Coe et al. (2004)
TIBG 29, 4.