Discussion
The payment to the input is in fixed supply in the short-run is called :
Answer: B
The payment is called Quasi rent.
Alfred Marshall used quasi rent for the earnings of factors, such as machines and equipment, that are fixed in supply in the short run but can be varied in the long run. In the short run their earnings are a surplus over variable cost, like rent; in the long run, as supply adjusts, the surplus disappears.
Economic rent is the surplus earned by a factor in fixed supply over its transfer earnings, classically land, in the long run as well. Transfer earnings are the minimum payment needed to keep a factor in its present use. Producer's surplus is the excess of price over the minimum price sellers would accept.
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