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The maximum rent is also known as Hotelling rent or scarcity rent and is the maximum rent that could be obtained while emptying the stock resource. In an efficient exploitation of a non-renewable and non-augmentable resource, the percentage change in net-price per unit of time should equal the discount rate in order to maximise the present ...
In marketing, carrying cost, carrying cost of inventory or holding cost refers to the total cost of holding inventory.This includes warehousing costs such as rent, utilities and salaries, financial costs such as opportunity cost, and inventory costs related to perishability, shrinkage, and insurance. [1]
Land number 1 will generate a profit of 100 units of corn, while land number 2 will only generate 90 units of corn. Finally, whenever land number 3 must be cultivated, the rent for land number 1 will be a rent of 20 units, and for land number 2, the rent will be 10. The profit will equal 80 units (profit made by the lowest quality).
Rent Kicker, or Percentage Rent: Common in retail store leases. This is a premium rent payment that the lessor requires and is treated as a period expense. For example, it may be stated in the contract that if sales are over $1,000,000, any excess over this amount will have 2% taken out as a rent kicker. This is not reported as part of the ...
The narrower term 'tenancy' describes a lease in which the tangible property is land (including at any vertical section such as airspace, storey of building or mine).A premium is an amount paid by the tenant for the lease to be granted or to secure the former tenant's lease, often in order to secure a low rent, in long leases termed a ground rent.
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