Matt Is Offered a Job Driving the Campus Shuttle Bus

question 12

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/hour.
Suppose the campus transportation director offers Matt $50/hour,and Matt doesn't have to share his income with anyone else.Will Matt accept this job?

• A)Yes,accepting the job means a positive surplus for Matt.
• B)No,accepting the job means a negative surplus for Matt.
• C)Yes,although accepting the job means a negative surplus for Matt,still it's better than having no job.
• D)No,although accepting the job means a positive surplus for Matt,still it's not the best option for him.

Analyze and compare mutually exclusive projects to decide which project to accept based on the required rate of return.

Understand the concept of average accounting return and its calculation.

Comprehend and apply straight-line depreciation in the calculation of net income and project returns.

Evaluate investment decisions using different financial metrics and make informed choices.

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Definitions:

Resale Price

The resale price is the amount for which goods or services are sold again to consumers or businesses after being bought from the original seller or producer.

Incidental Damages

Incidental damages refer to secondary or peripheral expenses that result from a breach of contract, such as the costs incurred to mitigate losses or to cover additional operational expenses.

Conforming Goods

Goods that meet the specifications and requirements as stated in a purchase contract.

Risk of Loss

Refers to the legal responsibility for the damage or destruction of goods, typically determined by the terms of sale or agreement between parties.