53.3k views
1 vote
Domestic producers experience limited import competition when a VER is in place. As a result, these producers make extra profit because supply is artificially limited by the import quota. This extra profit is called

net profit

quota rent

profit margin

trade surplus

quota share

User Molly
by
4.9k points

1 Answer

5 votes

Answer: Quota rent

Step-by-step explanation:

The quota rent is one of the type of economical concept that is used to refers to the extra profit which is received from the owner for imported various types of products and the services.

The Quota rent is basically calculated by using the difference between the free market price to the domestic price of the goods and the services.

According to the given question, when the extra profit producers results into the limited supply due to the artificial goods and the limited importing competition by the imported quota so this is known as the quota rent.

Therefore, Quota rent is the correct answer.

User Carl Whalley
by
4.6k points