Rob took the afternoon off from his job as a tire salesman to mow his lawn.Rob told his wife that this made sense because he would be saving the $50 he would have to pay a lawn service, noting that this would be the opportunity cost to the family.Rob's wife disagreed.What did Rob's wife say?

Question

Quizplus · Accepted Answer

Rob's wife likely pointed out that the opportunity cost of Rob mowing the lawn himself includes not just the $50 saved from not hiring a lawn service, but also the income he forfeits by not working that afternoon. This total opportunity cost is calculated by subtracting the $50 saved from the income he would have earned, indicating that the cost of the decision includes both the saved expense and the lost income.

Rob Took the Afternoon Off from His Job as a Tire