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Question: gerald grew up in michigan and recently graduated from the...

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Gerald grew up in Michigan, and recently graduated from the University of Michigan. He has two job offers, one from an employer in Detroit, another from an employer in San Francisco. If he works in Detroit, he can live in his familys house at no cost. The Detroit job pays $55,000 per year. If he moves to San Francisco, he must also pay moving costs. Housing is expensive in San Francisco, costing $24,000 per year. But the San Francisco job pays well, $86,000 per year. Suppose all other costs - food, gas, etc, are the same in both locations. a. Ignoring moving costs, what is the opportunity cost of working in Detroit? b. Suppose Gerald will only work one year. What is the most hed be willing to pay in moving costs? Moving costs arent just the price of paying for people to move your stuff. You also leave friends and family, and support networks. You need to spend time and effort learning new directions, making new friends, and so on. Suppose the total moving cost is $20,000. How many years would Gerald need to spend in San Francisco, to make moving worthwhile? c.

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