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Suppose Alex is considering two job offers. He can choose to either work in a Sushi bar or a cafe. The Sushi bar is only
Suppose Alex is considering two job offers. He can choose to either work in a Sushi bar or a cafe. The Sushi bar is only a six-minute walk from where he lives. The cafe is 30 minutes away by bus (single trip) with a daily ticket price of $4. The Sushi bar offers him 4 shift hours per day, five days per week and pays him $20 per hour. If working at the Sushi bar, Alex can also take two boxes of sushi home each week. The cafe offers him 5 shift hours per day, three days per week and pays him $30 per hour. If Alex will take one and only one of the jobs, which of the following statements regarding opportunity cost is correct? The opportunity cost of choosing to work in the cafe is $400 per week plus two boxes of sushi. The opportunity cost of choosing to work in the Sushi bar is $438 per week. The opportunity cost of choosing to work in the Sushi bar is $450 per week plus three hours of leisure time. None of the answers is correct
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