John is a soccer player who used to be a mechanic.Aside from the money,he enjoys both jobs equally.He earned $30,000 as a mechanic,and now he earns $250,000 as a soccer player.If John is a soccer player,which of the following statements is correct?
A) Total earnings = $280,000;Economic rent = $250,000;Opportunity cost = $30,000
B) Total earnings = $280,000;Economic rent = $30,000;Opportunity cost = $220,000
C) Total earnings = $250,000;Economic rent = $250,000;Opportunity cost = $0
D) Total earnings = $250,000;Economic rent = $280,000;Opportunity cost = $30,000
E) Total earnings = $250,000;Economic rent = $220,000;Opportunity cost = $30,000

Question

Quizplus · Accepted Answer

John's total earnings as a soccer player are $250,000. The economic rent is the amount he earns over his next best alternative, which is $250,000 - $30,000 = $220,000. The opportunity cost is the $30,000 he would have earned as a mechanic.

John Is a Soccer Player Who Used to Be a Mechanic.Aside