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Elijah is a college graduate who has been offered a job as a physicist that pays $90,000
Elijah is a college graduate who has been offered a job as a physicist that pays $90,000. Elijah has also been drafted by a professional baseball club. Elijah would have a value of $600,000 playing for any professional baseball team. League rules require that Elijah's drafting team pay him a salary of $500,000. Regarding his two options, for simplicity assume that Elijah only cares about money. If Elijah decides to play professional baseball for the team that drafted him, he will earn ? Select) in eapnomic "rent" $410,000 $600,000 $90,000 afted free agent, so could play for any team he wanted to, it is more $500,000 $510,000 onomic rent as high as (Select]
Elijah is a college graduate who has been offered a job as a physicist that pays $90,000. Elijah has also been drafted by a professional baseball club. Elijah would have a value of $600,000 playing for any professional baseball team. League rules require that Elijah's drafting team pay him a salary of $500,000 Regarding his two options, for simplicity assume that Elijah only cares about money. If Elijah decides to play professional baseball for the team that drafted him, he will earn Select] in economic "rent" If, instead, Elijah were an undrafted free agent, so could play for any team he wanted to, it is more likely that Elijah would earn economic rent as high a v[ Select] $410,000 $100,000 $600,000 $10,000 $510,000
Expert Solution
Ans-(A)
$410,000
As first job give him only $90,000 but playing baseball would give him $500,000 which is $410,000 more than th job of physicist.This will be called his Economic rent.Therefore option A will be correct.
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