Bonnie is debating whether to take a job as a professional therapist or a florist. She will earn $40,000 a year as a therapist or $22,000 a year as a florist. If she chooses to be a therapist, the economic rent is

Question

Quizplus · Accepted Answer

Economic rent is the difference between the earnings from the chosen option and the next best alternative. Here, it's $40,000 (therapist) - $22,000 (florist) = $18,000.

Bonnie Is Debating Whether to Take a Job as a Professional