Suppose Harrison Ford makes 2 movies per year and earns $10 million per movie. Suppose that if he weren't making movies his next best alternative would be to earn $500,000 per year endorsing shampoo. By making movies, Harrison Ford
A) is earning economic rent of $19,500,000 per year.
B) is not earning economic rent.
C) is earning economic rent of $20,000,000 per year.
D) is earning economic rent of $500,000 per year.
E) is earning economic rent of $20,500,000 per year.
Correct Answer:
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