A singer would willingly perform in a concert for $100,000. If she is paid $500,000 for the concert, she is

A) receiving $500,000 to cover her opportunity cost.
B) not being paid her full opportunity cost.
C) receiving $400,000 of economic rent.
D) certainly being paid more than warranted by the level of demand.


Answer: C) receiving $400,000 of economic rent.

Economics

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