A Dedicated Teacher Loves Being in the Classroom and Would

question 315

Multiple Choice

A dedicated teacher loves being in the classroom and would teach for $40,000 per year, but he is actually paid $55,000 per year. This individual

• A) receives economic rent of $20,000.
• B) receives accounting profit of $20,000.
• C) has an opportunity cost of $15,000.
• D) receives economic rent of $15,000.

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Definitions:

Market Equilibrium

A situation in a market where the quantity of a product demanded by consumers equals the quantity supplied by producers, leading to a stable price.

Competitive Industry

An industry characterized by a large number of firms competing with each other to provide goods or services to consumers.

Market Demand

The total quantity of a product or service that consumers are willing and able to purchase at various prices during a specified time period.

Market Equilibrium

A state in a market where the quantity demanded by consumers equals the quantity supplied by producers, leading to a stable price.