# Intramarginal Rent

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When three companies produce the same type of products and are price takers in the same market, they may still earn different profits if their cost pattern and production level differ. This Demonstration assumes profit-maximizing behavior for the three companies and calculates optimal quantities and corresponding profits for each company. The difference between the least cost-efficient and the others is referred to as intramarginal rent, an economic rent, exceeding the normal profit defined by the less cost-efficient.

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Contributed by: Arne Eide (January 2014)

Open content licensed under CC BY-NC-SA

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"Intramarginal Rent"

http://demonstrations.wolfram.com/IntramarginalRent/

Wolfram Demonstrations Project

Published: January 17 2014