Suppose your accounting professor has been offered a corporate job with a 20 percent pay increase. Why has he decided NOT to take the job?
A) The marginal cost of leaving was greater than the marginal benefit.
B) The marginal benefit of leaving was greater than the marginal cost.
C) The marginal benefit of leaving was less than the marginal cost.
D) The marginal benefit of teaching was greater than the marginal cost.

Question

Quizplus · Accepted Answer

The question states that the accounting professor has decided NOT to take the corporate job with a 20 percent pay increase. This means that the marginal benefit of leaving (the increased pay) was less than the marginal cost (the cost of leaving teaching, such as job satisfaction, stability, benefits, etc.). Therefore, the best choice is C.

Suppose Your Accounting Professor Has Been Offered a Corporate Job