Bill Brown commands $2 million a year as either a professional basketball player or a professional baseball player. His next best alternative is a coaching job at a high school that pays $60,000 a year. If Bill chooses to play professional basketball, then his economic rent from working at that job rather than working as a professional baseball player is

Question

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Economic rent is the difference between what an individual is paid and what they would be willing to accept for the job, given no better alternatives. Since Bill Brown would earn the same amount ($2 million) in either professional basketball or baseball, there is no additional economic benefit from choosing basketball over baseball, making the economic rent $0.

Bill Brown Commands $2 Million a Year as Either a Professional