Question
Alex needs to decide whether to go to work today or call in sick. If he goes to work, he will get his daily wage
Alex needs to decide whether to go to work today or call in sick. If he goes to work, he will get his daily wage of $73. It costs $20 to get to work. If he calls in sick, he will stay at home and invite his friends over for a party, which he values at $80. The cost of the party which involves renting a movie and getting snacks is $30. What is the best thing for Matthew to do given this information? (a) Go to work as his opportunity cost of working is $50. (b) Go to work as his opportunity cost of working is $30. (c) Call in sick as his opportunity cost of staying at home is $53. (d) Call in sick as his opportunity cost of staying at home is $73.
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