An actor receives $100 000 a year. The best alternative job he could obtain is as a lecturer paying $60 000 a year. What are his transfer earnings and his economic rent?
- Atransfer earnings $60 000; economic rent $40 000
- Btransfer earnings $60 000; economic rent zero
- Ctransfer earnings $40 000; economic rent $60 000
- Dtransfer earnings $40 000; economic rent zero