Estimate of the combined welfare of the two professors

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Consider two university professors who are on nine-month contracts. They each have a salary of $60,000 for nine months. The first professor always teaches summer school for the entire three months, and earns $22,000 over the summer. The other professor would at a minimum take $30,000 to teach for the three month summer term, so the second professor does not teach. The GDP accountant will calculate a combined contribution of these professors to GDP of $142,000. As the welfare account, what is your best estimate of the combined welfare of the two professors?

Reference no: EM132071396

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