Question

1. Matt has two choices for a summer job. The first opportunity is at a computer manufacturer, where he would earn 10.25 an hour. The second opportunity is with a landscaping company, where he could work and have lunch with three of his closest friends every day. The landscaping job would pay $8.65 per hour.

Answer 1

the question is incomplete, so i looked for similar questions and they referred to opportunity costs:

the opportunity cost of taking the summer job at the computer manufacturer = lost wages from the landscaping job + the value that Matt assigns to working and having lunch with his 3 friends = $8.65 per hour + value of friendship. Assuming that he could work 160 hours per month, total opportunity cost = $1,384 + value of friendship

the opportunity cost of taking the summer job at the landscaping company = the lost wages from the computer manufacturing job = $10.25 per hour. Assuming that he could work 160 hours per month, total opportunity cost = $1,640

Opportunity costs are the extra costs or benefits lost resulting from choosing one activity or investment over another alternative.