There Are Two Employers in Bucolic That Hire People Who

Multiple Choice

There are two employers in Bucolic that hire people who do not have a high school degree: a grocery store and a hardware store. The grocery store pays $10 per hour and the hardware store pays $12 per hour. People who work at either store can work as many hours as they want at those wages. Assume that it takes two hours to interview for a job. Lee works at the grocery store, but would like to work at the hardware store. If Lee interviews at the hardware store, there is a 10% probability of being hired. Assume that Lee is risk-neutral. In terms of foregone earnings, what does it cost Lee to spending two hours interviewing for a job at the hardware store?

A) 0
B) $2
C) $10
D) $20