The Demand and Supply Curves Shown Below Apply to a Competitive

Multiple Choice

The demand and supply curves shown below apply to a competitive market for a factor used in the production of widgets. FIGURE 13-2
-Refer to Figure 13-2.This factor market is in equilibrium at point B.Which of the following statements best describes factor payments at point B?

A) total income paid to the factor is $8
B) total of economic rent plus transfer earnings is $320
C) total factor earnings are $320 and the 40th unit earns zero rent
D) total factor earnings are $320 and the 40th unit earns economic rent of $8
E) economic rent to the 40th unit is $320