Professor Simpson Earns $80,000 Per Year Teaching at the Local

Multiple Choice

Professor Simpson earns $80,000 per year teaching at the local college. Due to budget cutbacks, the college cuts her annual salary to $50,000 per year. Professor Simpson remains at the college and her behavior at work is not affected by the salary cut.Based upon this information, which of the following is most likely?

A) Professor Simpson's entire salary is an economic rent.
B) The $30,000 cut from Professor Simpson's salary was entirely economic rent.
C) The $30,000 cut from Professor Simpson's salary was partly economic rent.
D) a and b