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.In equilibrium,the 20th unit of the factor is being paid transfer earnings of ________ and economic rent of ________.

A) $120; -$2
B) $16; $2
C) $320; $80
D) $120; $40
E) $6; $2