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/hour.
Suppose the campus transportation director offers Matt $50/hour,and Matt doesn't have to share his income with anyone else.Will Matt accept this job?
A) Yes,accepting the job means a positive surplus for Matt.
B) No,accepting the job means a negative surplus for Matt.
C) Yes,although accepting the job means a negative surplus for Matt,still it's better than having no job.
D) No,although accepting the job means a positive surplus for Matt,still it's not the best option for him.
Correct Answer:
Verified
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