https://dominicanu.instructure.con John is trying to decide how to divide his ti

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https://dominicanu.instructure.con 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 orn how many hours he spends cleaning in a day, as shown in the table below: Total Number Marginal Hours Per Day Cleaning of Windows Windows Cleaned Number of Windows Cleaned 0 n/a 7 3 14 16 17 3 4 2

Explanation / Answer

The blank row in the marginal column will have value = 11 - 7 = 4

Wage as stocker = $7 per hour

Wage for cleaning each window = $2

When John spends 2 hours cleaning windows , he gets = 11 * 2 = $22

If he worked as stocker he would have got = 7*2 = 14 $

If 3 hrs spent , from windows = 14*2 = 28$ , from stocker job = 7 * 3 = 21$

Additional amount from windows = 28 - 22 = $6

Additional amount from stocker = 21 - 14 = $7

Answer : No , because the additional amount he would earn is $6 which is less than his opportunity cost of $7 .

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