Question
Claudia would be willing to pay as much as $100 per week
to have her house cleaned. John's opportunity cost of cleaning Claudia’s house is $70 per week. Assume Claudia is required to pay a tax of $40 when she hires someone to clean her house for a week. Which of the following is correct?Solution
Claudia cleans her own house as its beneficial to her compared to other alternatives.
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