Suppose that Oprah Winfrey was not a superstar, then she would have been a judge making $100,000 per year. If she makes $65 million dollars this year, her economic rent is

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Quizplus · Accepted Answer

Economic rent is the difference between what someone actually earns and what they would earn in their next best alternative occupation. In this case, Oprah's economic rent is the difference between her current earnings ($65 million) and what she would earn as a judge ($100,000). Therefore, her economic rent is $64.9 million.

Suppose That Oprah Winfrey Was Not a Superstar, Then She