Consider Two Resource Markets,A and B,where the Demand Curves for the Resources

question 160

Multiple Choice

Consider two resource markets,A and B,where the demand curves for the resources slope downward.The supply curve of resource A is horizontal,and the supply curve of resource B is vertical.In market A,the equilibrium price is $6 and the equilibrium quantity is 100 units.In market B,the equilibrium price is $20 and the equilibrium quantity is 30 units.Which of the following is true?

• A)Total resource earnings are the same in both markets.
• B)Total resource earnings are greater in market A.
• C)Total resource earnings are greater in market B.
• D)All earnings from resource A are economic rent.
• E)All earnings from resource B are its opportunity costs.

---

Definitions:

Average Earnings

The mean income calculated by dividing the total income of a group by the number of individuals in that group.

Total Compensation

The complete package of benefits, including salary, bonuses, health insurance, and other perks, that an employee receives from an employer.

Information Technology

The sector of technology dedicated to the development, implementation, and management of computer-based information systems.

Employee Privacy

The right of employees to have their personal information and activities remain confidential and protected within the workplace.