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What are the monetary, non-monetary, and opportunity costs of each of these jobs? Job A. This job involves writing advertisements and creating art to go along with the text. It pays well, though advancing in this field takes many years. The employer tells you that you are likely to work a lot of overtime hours. The office is located far across town, involving a long bus ride or drive. The people at the office seem very nice. The work atmosphere is formal, as is the dress code. Job B. This job involves filling out and filing paperwork. The entry-level pay is low, but there are many opportunities within the company. The employer tells you that the company prefers to "promote from within," or fill vacant jobs by promoting people who already work at the company. The building is a short bus ride, bike ride, or walk from where you live. The people at the office are friendly and helpful, and the whole office has a casual atmosphere.

Choosing lower-paying Job B involves a monetary cost, plus Job A is more creative, so there's also a non-monetary cost. Job A's overtime is a monetary (reduced pay per hour worked) and opportunity cost, because you could be socializing during those overtime hours. Job A's longer commute is a non-monetary and opportunity cost, because you will need to wake up earlier. Job A's more formal atmosphere is a non-monetary cost, as it might be more stressful at Job B.

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For the purpose of this answer, let’s assume that the employee is choosing between the two jobs and not analyzing each job independently. One benefit of Job A is the higher starting salary. Choosing Job B over Job A involves a monetary cost, plus Job A is more creative, so choosing Job B involves a non-monetary cost also.

However, Job A does not provide the same prospects for advancement as Job B. With Job A, "advancing in this field takes many years," whereas with Job B, despite the low entry-level pay, there are many opportunities within the company and the employer likes to "promote from within."

This difference implies a monetary cost. We really need more information to make an informed determination. Taking Job A generates higher income initially, but could it be that Job B would result in higher pay within three years? It is unclear, but this is a monetary cost associated with the two jobs, as it pertains to the salary.

With Job A, you are likely to work many overtime hours. This...

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