Question
Abdi works as an accountant and makes a salary of $56,000 per year. Abdi's spouse, Lily, is pregnant and expecting twins next month. Lily works
Abdi works as an accountant and makes a salary of $56,000 per year. Abdi's spouse, Lily, is pregnant and expecting twins next month. Lily works as a pharmacist and makes a salary of $115,000 per year. Abdi and Lily have to decide who will take care of the babies after they are born. It costs $344 per week per child for care, and the couple would need to pay for 52 weeks of child care that first year. Suppose that Abdi and Lily decide that Abdi will be a stay-at-home parent for the first year. a. What do you think are the non-monetary costs and non-monetary benefits of this decision that Abdi and Lily had to consider? b. Using the concept of opportunity cost, explain why you think Abdi and Lily made this choice. Use the numbers to help justify your explanation. You must explain in words and numbers to get full points.
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