A violinist will take no less than $40,000 a year touring with the Seattle Symphony Orchestra. Otherwise she would prefer to work as a music teacher in Seattle. The Orchestra actually pays her $75,000. The rent component of her orchestra wage is

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The rent component of her orchestra wage is the difference between what she actually gets paid ($75,000) and the minimum she would accept to not choose her next best alternative ($40,000), which is $35,000.

A Violinist Will Take No Less Than $40,000 a Year