Harold, a delivery man, washes and irons his own shirts. Sarah, his boss, sends her clothes to a laundry. Which is the most plausible economic explanation for this difference?

Question

Quizplus · Accepted Answer

The most plausible economic explanation for this difference is that Sarah has a higher opportunity cost of laundering her clothes than Harold does. This means that Sarah values her time more highly than Harold does and would rather spend her time on other activities instead of washing and ironing her own clothes. Therefore, it makes economic sense for Sarah to pay someone else to do her laundry while Harold is willing to invest his time and effort into washing and ironing his own shirts.

Harold, a Delivery Man, Washes and Irons His Own Shirts