Raleigh is staying home from work to take care of their kids

Raleigh is staying home from work to take care of their kids, who have the flu. Raleigh consider they should stay home because the $100 they lose from missing work is less than the $ 150 cost of hiring a nurse to sit with their kids. They value their non-market labour as equal to ____________, and use the ________________ (opportunity cost / replacement cost) of ______________ (inputs/ outputs) to make this assessment.

Solution

$150(cost of hiring a nurse)_

Opprtunity cost (staying home and not going to work)

Output