Jorge is debating whether to concentrate on playing professional football or professional baseball. He is offered $6 million a year to play baseball and $8 million a year to play football. If he chooses to play football

Question

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The economic rent in his salary is the difference between what he is paid for playing football ($8 million) and the next best alternative, which is playing baseball ($6 million), resulting in $2 million.

Jorge Is Debating Whether to Concentrate on Playing Professional Football