Matt Is Offered a Job Driving the Campus Shuttle Bus

question 31

Multiple Choice

Matt is offered a job driving the campus shuttle bus from 4 p.m. to 6 p.m. each Monday. His reservation wage for this job is $7 per hour. If the campus transportation director offers Matt $50 per hour, how much economic surplus will Matt enjoy as a result of accepting the job?

• A)$36 per hour
• B)$43 per hour
• C)$50 per hour
• D)$86 per hour

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Definitions:

COGS

The specific costs tied to manufacturing goods that a business sells.