As the perspective moves from a narrowly defined use of a factor to a more broadly defined
use of a factor, the mobility of the factor decreases; as mobility decreases, the share of the
factor payment that is economic rent increases.Increases in the price of oil that are not needed to increase the quantity
supplied generate economic rents for producers. For example, if the
owner of this well is only willing to operate it when the price of oil is $35
per barrel or higher, then any price above that level generates some
economic rent for the producer.
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Consider how this relationship applies to the often controversial large
salaries that are received by some highly specialized types of workers,
such as movie stars and professional athletes. These performers have a
unique style and talent that cannot be duplicated, whatever the training.
The earnings they receive are mostly economic rent from the viewpoint of
the occupation: These performers generally enjoy their occupations and
would pursue them for much less than the high remuneration that they
actually receive.