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Sue Ellen works for a large computer company. She expects to work this period and next period, and then retire. Her current employer pays her $50,000/year. A rival firm offers her the same job at a salary of $56,000/year. However, Sue Ellen places a value of $10,000 on remaining with her current employer since she has many friends at her current company and does not enjoy meeting new people. Sue Ellen decides to reject the job offer. How much must Sue Ellen discount future benefits?
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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