Answer to Question #132683 in Microeconomics for Ghulam zohra sheikh

Question

: You graduate from college and are offered three jobs (Job A, Job B, and Job C). Assume that they are identical in all respects (duties, benefits, promotion prospects, and so on) except that the salaries differ, as shown below: Job A $150,000 Job B $120,000 Job C $100,000 First, which of the three jobs would you choose? (No, you can’t have all three!) Because you have made a choice, you have incurred an opportunity cost. What is the opportunity cost of your job choice? Comparing benefits and costs, have you made a rational choice?  

Answer 1

I would choose Job A

Considering Job B;

Opportunity cost = Return on the option not chosen - Return on chosen option

Opportunity Cost ;

$120,000$-$$150,000=$-$$30,000

Considering Job C;

Opportunity cost = Return on the option not chosen - Return on chosen option

Opportunity cost ;

$100,000$-$ $150,000=$-$ $50,000.

Yes I've made a rational choice since the income is higher hence I'll have higher benefits and the income will help me meet my daily costs and satisfy my endless wants.