Consider Two Resource Markets in Which the Demand Curves Slope

question 161

Multiple Choice

Consider two resource markets in which the demand curves slope downward.In market A,the supply curve is horizontal,equilibrium price is $10,and 90 units of the resource are hired.In market B,the supply curve is vertical,equilibrium price is $30,and 40 units of the resource are hired.Which of the following is incorrect?

• A) In market A,total earnings = $900
• B) In market A,opportunity cost = $900
• C) In market B,total earnings =$1,200
• D) In market B,economic rent = $1,200
• E) In market B,opportunity cost = $900

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Definitions:

Winning

Achieving a position of leadership or superiority in a contest or competition.

Mentally Rehearsing

Mentally rehearsing involves practicing an activity or visualizing a performance in the mind without physical execution, to improve skill or prepare for actual performance.

Forgiveness

The process of letting go of resentment, anger, or claims against another individual or oneself for perceived offenses.

Perspiration Levels

The amount of sweat produced by the body, which can vary based on temperature, physical exertion, or stress.