Catherine and Nancy both own homes with lawns of similar size. Catherine mows her own lawn while Nancy hires someone to mow hers. Assume both women are rational decision makers. Which is the best explanation of the different decisions they make?

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Quizplus · Accepted Answer

This is the most likely explanation since it accounts for the fact that both women are rational decision makers. It suggests that Nancy has a higher opportunity cost for her time (meaning her time is worth more financially) than the cost of hiring someone to mow the lawn, so it makes sense for her to outsource the job.

Catherine and Nancy Both Own Homes with Lawns of Similar