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

question 106

Multiple Choice

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

• A)$0.
• B)$60,000.
• C)$1 million.
• D)$1,930,000.
• E)$2 million.

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Definitions:

Utility Function

A mathematical representation of a consumer's preference ordering over a set of goods and services.

Leather Jackets

Garments made from the skin of animals, primarily cows, processed and designed for wear primarily as outerwear.

Utility Function

A mathematical representation of a consumer's preference ranking for bundles of goods or services, used to predict economic behavior.

Curds

The solid parts of milk that coagulate when milk is soured or treated with enzymes, used in cheese-making.