I asked my neighbor to rake the leaves on his lawn because they were blowing into my yard.He responded that it would not be rational for him to do so.Why would this be the case?
A) My neighbor lacks the equipment to rake leaves and thinks it would take too long to do the job.
B) My neighbor is a busy person and does not have time to rake leaves.
C) My neighbor is getting revenge on me because I did not rake the leaves on my lawn last year.
D) My neighbor is a lawyer who values his time at $200 an hour and knows that he can hire a high school kid to rake leaves for $20 an hour.
E) My neighbor is a high school teacher and values his time at $15 an hour, and he knows that he can hire one of his students to rake leaves for $20 an hour.

Question

Quizplus · Accepted Answer

This choice suggests that the neighbor is rational in the economic sense, valuing his time at a certain dollar amount and choosing to delegate the task to someone else for a lower cost. This is a commonly used economic concept called opportunity cost.

I Asked My Neighbor to Rake the Leaves on His