Rent

Rent

Bachelor of Business Studies (BBS) — First Year

Subject: Microeconomics for Business (MGT 207)

Unit 8: Theory of Factor Pricing

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of rent.
• Explain the economic reasoning and use appropriate diagrams or relationships in business analysis.

Curriculum Scope

• Modern theory of rent

Detailed Microsyllabus

1. Modern theory of rent

   1. Transfer earnings and economic rent.
   2. Factor supply and demand.
   3. Rent as the payment above the minimum required to retain a factor.

2. Rent analysis

   1. Inelastic, elastic and intermediate factor-supply cases.
   2. Graphical separation of transfer earnings and rent.
   3. Apply the theory beyond land while stating factor-market assumptions.

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Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 17-19.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here. The programme subject list identifies this course as MGT 207; the detailed subject heading in the source prints MGT 203.