Suppose Jon Stewart of the "Daily Show" makes an annual income of $1,000,000. If he quit his television job and went into producing he could make $400,000 per year. Jon Stewart's annual economic rent to labor is

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Economic rent is the difference between what Jon earns in his current job and what he could earn in his next best alternative. Here, it's $1,000,000 (current income) - $400,000 (alternative income) = $600,000.

Suppose Jon Stewart of the "Daily Show" Makes an Annual