James Received Two Job Offers

Multiple Choice

James received two job offers. Both the companies required him to do the same work. However, Company A offered him a salary of $2,000 per month while Company B offered him a salary of $2,400. James decided to take up the first offer because Company A's office was closer to his house than Company B's office. The compensating differential that James is willing to pay in this case is _______.

A) $400
B) $2,000
C) $2,400
D) $4,400