A fashion model earns $500 000 a year. If the highest-paid alternative job he could obtain is a teaching position paying $100 000 a year, what are his transfer earnings and his economic rent?
- Atransfer earnings $0; economic rent $400,000
- Btransfer earnings $100,000; economic rent $400,000
- Ctransfer earnings $400,000; economic rent $0
- Dtransfer earnings $400,000; economic rent $100,000