Author Question: Sue is taking an accounting job she was offered that pays 67,000 per year. She also had two other ... (Read 76 times)

s.tung · **on:** Jul 1, 2018

Sue is taking an accounting job she was offered that pays 67,000 per year. She also had two other offers, a sales job paying 71,000 per year and a marketing job paying 65,000 per year. What is Sue's opportunity cost of taking the accounting job?

A) 65,000
B) 67,000
C) 71,000
D) 136,000

Question 2

Explain the difference between the marginal rate of substitution and the marginal rate of transformation.

What will be an ideal response?

efwsefaw · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

C

Answer to Question 2

The marginal rate of substitution is a consumer's willingness to trade one good for another based on utility. The marginal rate of transformation is the consumer's ability to trade one good for another based on prices.