You are a professor of economics at a university. you've been offered the position of serving as department head, which comes

Question

3 years ago

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You are a professor of economics at a university. you've been offered the position of serving as department head, which comes

with an annual salary that is $8 comma 5008,500 higher than your current salary. however, the position will require you to work 200 additional hours per year. suppose the next best use of your time is spending it with your family, which has value of $2020 per hour.

Business

1 answer:

Oxana [17] · Answer 1 · 2022-05-08T05:36:11+03:00

Answer:

$4500

Explanation:

We can calculate the total change in benefits by deducting the opportunity cost of spending the hours with your family by the annual salary.

Opportunity cost = $20/hour x 200 Additional hours

Opportunity cost = $4000

Total change in benefit = Annual salary - Opportunity cost

Total change in benefit = $8500 - $4000

Total change in benefit = $4500

You are a professor of economics at a university.​ you've been offered the position of serving as department​ head, which comes

You are a professor of economics at a university. you've been offered the position of serving as department head, which comes