Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

  1. Forty Thieves changes its offer to $7.75 an hour.
  2. Ali Baba's changes its offer to $7.50 an hour.
  3. Forty Thieves changes its offer to $8.25 an hour.
  4. 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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Justice In A Global Economy Strategies For Home, Community, And World

Authors: Rebecca Todd Peters, Pamela K Brubaker, Laura A Stivers

1st Edition

0664229557, 9780664229559

More Books

Students also viewed these Economics questions