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 labour market for farm workers in New Zealand, using supply and demand with wage O-F-J etc. Which areas show the economic rent and the transfer earnings of the farm workers?

  • Aeconomic rent: GFK; transfer earnings: GHOJ
  • Beconomic rent: GHOJ; transfer earnings: GJK
  • Ceconomic rent: GJK; transfer earnings: GJF
  • Deconomic rent: GJK; transfer earnings: GHOJ

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