Scenario 13-3
Gary is a senior majoring in computer network development at Smart State University. While he has been attending college, Gary started a computer consulting business to help senior citizens set up their network connections and teach them how to use e-mail. Gary charges $25 per hour for his consulting services. Gary also works 5 hours a week for the Economics Department to maintain that department's Web page. The Economics Department pays Gary $20 per hour.
-Refer to Scenario 13-3.Which of the following statements is correct?
A) Gary should increase the number of hours he works for the Economics Department to make it comparable to his consulting business income.
B) Gary is not maximizing his well-being if he continues to work for the Economics Department.
C) If Gary chooses one hour at the beach with his friends rather than spend one more hour with a consulting client, the forgone income of $25 is considered a cost of the choice to go to the beach.
D) Both b) and c) are correct

Question

Quizplus · Accepted Answer

If Gary chooses to spend one hour with his friends at the beach instead of working with a consulting client, the forgone income of $25 is considered a cost of going to the beach. While it may be tempting to choose option A and increase his hours working for the Economics Department, the decision ultimately depends on Gary's preference for consulting versus working for the department. Option B is incorrect because it assumes that Gary should only be motivated by income, and does not take into account non-monetary factors such as job satisfaction.

Scenario 13-3 Gary Is a Senior Majoring in Computer Network Development at Development