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

Long-run costs and economies of scale — practice question

How do economic rent and transfer earnings change when the supply of labour becomes perfectly inelastic?

  • Aeconomic rent decreases; transfer earnings increase
  • Beconomic rent decreases; transfer earnings stay the same
  • Ceconomic rent increases; transfer earnings decrease
  • Deconomic rent stays the same; transfer earnings decrease

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