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 can be put to a single use and has no alternative uses then:

A) economic rents are zero.
B) transfer earnings are maximized.
C) total earnings are zero.
D) all earnings are economic rents.
E) all earnings are transfer earnings.

Correct Answer:

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