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Katy currently works at a job where she makes $50/hour. The cost per hour, to her, of the effort she puts in is $20/hour. She
Katy currently works at a job where she makes $50/hour. The cost per hour, to her, of the effort she puts in is $20/hour. She works 40 hours/week. For each of the situations below, calculate the dollar amount of Katy's economic rent from her job.
a. If she became unemployed, Katy would be expected to be unemployment for 10 weeks without any benefits.
b. If she became unemployed, Katy would be eligible for 10 weeks of benefits (earning $15/hour), but would be unemployed for 20 weeks.
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