Jane works a job that pays hourly and just received a raise. Jane also has some flexibility in her schedule she can work a few more or few less hours if she wishes. Jane would like to take a trip to Spain, but she is also considering increasing her contribution to her 401k which she would not be able to do if she takes the trip (because if she does not work, she does not get paid).

a. What is the cost of taking the time off to go to Spain?

b. Does Jane work more or fewer hours if she decides to take the trip to Spain?

c. Suppose Jane decides to not take the trip to Spain, why might she decide against the trip?