Asked by
julissa arroyo
on Dec 11, 2024
Verified
Sophia is an architect and she is trying to decide whether to hire Jacob, a draftsman, to assist with her work. Sophia could hire Jacob at $20 per hour but it would take him three times as long to complete a task as it takes Sophia. Sophia is able to earn $90 per hour and has more architectural jobs than she is able to handle. Which of the following is true?
A) Sophia should not hire Jacob because it would be faster for her to do the work herself.
B) Sophia should do the drafting work herself because she has the lower opportunity cost.
C) Jacob should be hired at the $20 per hour wage rate.
D) Jacob should be hired, but only if he is paid more than $30 per hour.
Opportunity Cost
The price paid for not selecting the next preferable option when a choice is made.
Architectural Jobs
Employment positions focused on designing buildings and structures, ensuring they are functional, safe, and aesthetically pleasing.
Wage Rate
The fixed amount of money paid to an employee for work performed, typically expressed per hour or piece.
- Identify the opportunity costs associated with various production choices and their relevance to economic decision-making.
Verified Answer
SD
Learning Objectives
- Identify the opportunity costs associated with various production choices and their relevance to economic decision-making.
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