Mary must decide between two alternatives for the weekend: babysitting or yard work.If she babysits,she will receive $40 and will incur $15 in transportation costs.If she does yard work,she will receive $40 and will incur $3 in lawn mower gas and oil costs and $5 in transportation costs.The payment she would receive for the jobs is relevant in deciding which alternative to select.

Question

Quizplus · Accepted Answer

The payment for both jobs is the same ($40), so it does not affect the decision. The relevant factor is the net income after costs, which differs between the two alternatives.

Mary Must Decide Between Two Alternatives for the Weekend: Babysitting