Questions refer to the following diagram.

-The collective amount of economic rent being earned by workers in this competitive market is:

Question

Questions  refer to the following diagram.
 
-The collective amount of economic rent being earned by workers in this competitive market is:

Quizplus · Accepted Answer

Economic rent is the difference between the wage rate and the minimum wage necessary to attract workers to that job. In this diagram, the equilibrium wage rate is at point A, which is the minimum wage necessary to attract workers to this job. Therefore, there is no economic rent being earned by workers below point A. Above point A, there is economic rent being earned because the wage rate is higher than the minimum necessary to attract workers. This only occurs in the area between points A and B, and points A and D. Therefore, the only correct choice is C, which includes this area.

Questions Refer to the Following Diagram