Sadie is getting ready to go to work where she earns $70 a day as a day laborer.Her friend Caroline calls her and asks her to go swimming with sharks for the day.Sadie decides to go with her.Sadie's choice implies that her opportunity cost of working:

Question

Quizplus · Accepted Answer

Sadie's opportunity cost of working is the value or benefits she would have received had she chosen to work instead of going swimming with sharks. Since she chose to go swimming with sharks instead of working, it implies that the benefits she would receive from going swimming with sharks are greater than the amount she would earn from working for that day which is $70. Hence, her opportunity cost of working is greater than $70.

Sadie Is Getting Ready to Go to Work Where She