Lance's boss offers him twice his usual wage rate to work tonight instead of taking his girlfriend on a romantic date. Which of the following is the likely outcome of this offer?

Question

Quizplus · Accepted Answer

The offer of twice the usual wage rate will increase the opportunity cost of going on the date. The opportunity cost of going on a date is the value of the next best alternative that has to be given up, which in this case is the extra money Lance could earn by working instead. Since the wage rate is higher than usual, the opportunity cost of the date increases, making it a more expensive alternative. Therefore, Lance is more likely to choose to work instead of going on the date.

Lance's Boss Offers Him Twice His Usual Wage Rate to Work