An actor receives $100 000 a year. The best-paid alternative job he could obtain is as a lecturer. He believes that he is currently earning an economic rent of $40 000. What wage could he receive as a lecturer, and what are his transfer earnings?
- Awage as a lecturer ($) 40 000; transfer earnings ($) 60 000
- Bwage as a lecturer ($) 40 000; transfer earnings ($) 140 000
- Cwage as a lecturer ($) 60 000; transfer earnings ($) 60 000
- Dwage as a lecturer ($) 60 000; transfer earnings ($) 140 000