Homework Answers
A dentist though capable of mowing his lawn will hire someone to do so because the opportunity cost of a dentist doing it will be very high. For example, for the dentist it takes 4 hours to mow his lawn and in that 4 hours he can see 20 patients and earn a total of $200. On the other hand, the cost of hiring a labor to mow the lawn in just $50.
In that case, if he is mowing the lawn on his own then he is making a loss of $150. this is the sum which he could have earned while treating his patients if he was not mowing a lawn. Due to this high opportunity cost he will hire someone to do the job.
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