Unformatted text preview: W 1 experience an increase in economic rent, as do all new workers who would have been willing to work for less than W 2 . Economic rent increases by W 1 ab W 2 . Total opportunity cost also rises. Workers who were unwilling to work at W 1 have higher opportunity costs than those who were working at the lower wage rate. Now that some of the workers with higher opportunity costs are employed in this market, total opportunity cost rises by E 1 abE 2 ....
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- Summer '08
- Supply And Demand, $ 7, $ 8, 6 $, $ 9, 5 $