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 person is earning $80,000 per year as a dentist and could earn at most $45,000 per year doing something else, his transfer earnings are ____, whereas his economic rent is ____.

A) $45,000, $35,000
B) $80,000, $45,000
C) $45,000, $80,000
D) $80,000, $35,000
E) $35,000, $45,000

Correct Answer:

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