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Question Two Carol and Jeremiah have both been offered jobs at a marketing firm, the jobs...

Question Two

Carol and Jeremiah have both been offered jobs at a marketing firm, the jobs pay the same and have the same benefits. Carol turns the job down and Jeremiah accepts the job. Who must have the higher opportunity cost? Explain. Tell a story that illustrates your answer.

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Carol. This is because he Can earn more in other job. Suppose marketing firm offers 100 dollars per day to both. But Carol can earn 125 as software engineer per day Whileas Jeremiah can earn only 90 as teacher. Clearly carol will prefer being soft engineer because he gains 125-100=25 dollars by doing so. Jeremiah will prefer marketing job because he gains 100-90=10 in the process. Thus Carol turned job because his oppurtunity cost of 125 is greater than that of jeremiah(=90)

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