Consider the following demand and supply curves in factor markets. FIGURE 13-4
-Refer to Figure 13-4.In diagrams 1 and 4,the marginal worker is earning
A)transfer earnings only.
B)economic rent only.
C)both transfer earnings and economic rent.
D)a wage greater than the equilibrium market wage.
E)a wage greater than the worker should receive for the product produced.

Question

Consider the following demand and supply curves in factor markets.  FIGURE 13-4
-Refer to Figure 13-4.In diagrams 1 and 4,the marginal worker is earning
A)transfer earnings only. 
B)economic rent only. 
C)both transfer earnings and economic rent. 
D)a wage greater than the equilibrium market wage. 
E)a wage greater than the worker should receive for the product produced.

Quizplus · Accepted Answer

In diagrams 1 and 4, the marginal worker is earning transfer earnings only, which is the minimum payment required to keep the worker in their current employment.

Consider the Following Demand and Supply Curves in Factor Markets