Question

Suppose that you are currently earning £20 per hour wage rate for the first 8 hours and £35 per hour for anything more than 8 hours of work. You have a new job offer that pays £25 per hour flat rate. Assuming you work 12 hours per day for both jobs, will you accept the new job? Why? Explain it using a diagram.

Answer 1

Earnings at current job:

£20(8) + £35(4) = £160 + £170 = £330

Earnings at new job:

£25(12) = £300

No, the new job will not be accepted because £300 (earnings at current job) < £330 (earnings at new job).