John is trying to decide how to divide his time between his job as a stocker in

Question

John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the table below .

Hours per day        Total Number of

cleaning windows    Windows cleaned

0   0

1 7

2    11

3   14

4   16

5 17

Explanation / Answer

Answer:

John's hourly opportunity cost of cleaning windows is $7; and the benefit from the first hour cleaning windows is $8 (=11-4 * 2 )

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