Joanna is paid $50 an hour to DJ at Club Keynes on Friday and Saturday nights. The Club is closed all other nights. She also is paid $15 an hour to work at the library. The library lets her work as many hours as she wants. Club Karl wants to hire Joanna to DJ on Thursday nights. The marginal opportunity cost of hiring Joanna at Club Karl is $50 an hour.

Question

Quizplus · Accepted Answer

The marginal opportunity cost of hiring Joanna at Club Karl on Thursday nights would be $15 an hour, since she would otherwise be working at the library for that rate, not $50 an hour, as Club Keynes operates only on Friday and Saturday nights and does not conflict with the Thursday night opportunity.

Joanna Is Paid $50 an Hour to DJ at Club