A fashion model earns $500 000 a year. If the best alternative job he could obtain is as a teacher earning $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