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Jasmine is considering taking a job as a hostess at the Forty Thieves restaurant, for $8 an hour. She was also offered a hostess position
Jasmine is considering taking a job as a hostess at the Forty Thieves restaurant, for $8 an hour. She was also offered a hostess position at Ali Baba's restaurant, where she would be paid $7.25 an hour. Which of the following will decrease Jasmine's opportunity cost of taking the job at Forty Thieves?
- Forty Thieves changes its offer to $7.75 an hour.
- Ali Baba's changes its offer to $7.50 an hour.
- Forty Thieves changes its offer to $8.25 an hour.
- Ali Baba's changes its offer to $7.00 an hour.
My solution is 1 or 2. Current opportunity cost is 0.75, and 1 or 2 will decrease the opportunity cost to 0.5.
However the solution said the answer is 4. Would you tell me why?
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