The Figure Given Below Represents Equilibrium in the Labor Market

The figure given below represents equilibrium in the labor market with the demand and supply curves of labor.Figure 14.6
In the figure,
D = MRP implies demand for labor = Marginal Revenue Product
MFC represents Marginal Factor Cost curve
S represents the supply curve of labor

-If a resource has a perfectly elastic supply curve then its income is termed as:

A) economic rent.
B) rental rate of capital.
C) rental income.
D) annuity.
E) transfer earnings.

Correct Answer:

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