Matt is offered a job driving the campus shuttle bus from 4 p.m. to 6 p.m. each Monday. His reservation wage for this job is $7 per hour. Suppose the campus transportation director offers Matt $50 per hour. Will Matt accept this job?
A) Yes, accepting the job means a positive economic surplus for Matt.
B) No, accepting the job means a negative economic surplus for Matt.
C) Yes, although accepting the job means a negative economic surplus for Matt, it's still better than having no job.
D) No, although accepting the job means a positive economic surplus for Matt, still it's not the best option for him.
Correct Answer:
Verified
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