Economics 9708 · AS & A Level · Long-run costs and economies of scale

Long-run costs and economies of scale — practice question

The diagram illustrates the supply and demand position in a particular labour market. When the market is at equilibrium, which areas show the economic rent and transfer earnings earned by employees?

  • Aeconomic rent: JLN / transfer earnings: OKLJ
  • Beconomic rent: JML / transfer earnings: OKLJ
  • Ceconomic rent: NML / transfer earnings: OKLM
  • Deconomic rent: OKLM / transfer earnings: NML

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