Suppose the local market for legal services has an upward sloping supply curve, PL = 150...
Suppose the local market for legal services has an upward sloping supply curve, PL = 150 + 0.0001QL where PL is the price of legal services and QL is the number of hours of legal services. If the equilibrium price of legal services is $250 per hour, what is the aggregate economic rent earned by lawyers in this market?
A) $50,000
B) $1,000,000
C) $50,000,000
D) $100,000,000
Explanation!
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