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Maria earns $12 per hour in her current job and works 35 hours a week. Her disutility of effort is equivalent to a cost of
Maria earns $12 per hour in her current job and works 35 hours a week. Her disutility of effort is equivalent to a cost of $1 per hour of work. If she loses her job, she will receive unemployment benefit equivalent to $4 per hour. Additionally, being unemployed has psychological and social costs equivalent to $1 per hour. Calculate the employment rent per hour.
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