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

question 40

Multiple Choice

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?

• A)Harold must enjoy ironing more than Sarah does.
• B)Harold must be better at ironing than Sarah is.
• C)The opportunity cost of ironing is greater for Harold.
• D)Harold probably has an absolute advantage in ironing.
• E)Sarah has a higher opportunity cost of laundering her clothes than Harold does.

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Definitions:

Right Price

The optimum price point for a product or service where it meets the customer's value perception and the company's profitability goals.

Reasonable Price

A price that is fair and appropriate for the value of the goods or services being provided, often considered from the perspective of the average consumer.

Lawn Mowers

Machines or devices equipped with revolving blades or a blade that cuts a lawn at a consistent height.

Television Advertising

The use of TV commercials to promote products, services, or ideas to a broad audience, leveraging the medium's visual and audio capabilities.