An unemployed salesperson turns down a job paying Rs500 a week and keeps searching for better pay. What is the cost of this continued search?
Correct answer D. The Rs500 weekly salary that he has forgone and the monetary costs incurred by continuing to search
Explanation
The full cost of search includes the opportunity cost of the rejected wage plus out-of-pocket expenses such as travel and applications. Both are sacrificed for each extra week spent looking.
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