Sally earned $25,000 per year before she became a mother. After she became a mother, she told her employer that her opportunity cost of working is now $50,000, and so she is not willing to work for anything less. Her decision is based on:

Question

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Sally's decision is based on the value she places on spending time with her child, which is reflected in her high opportunity cost of working. This suggests that Sally values the time spent with her child more than the income she would earn from working, which is why she is not willing to work for anything less than $50,000. The other options (A, B, and C) are not directly mentioned in the scenario and cannot be inferred from the information given.

Sally Earned $25,000 Per Year Before She Became a Mother