The video is informative for the most part. I understand how you're better off leaving the job for your son. However, I'm confused as to why your son is better off mowing the lawn instead of earning SR 150 at McDonalds? Are you going to pay him (> SR 150) from the SR 900 you'll earn doing economics while he mows?
The idea is that I can earn 300 and my son can earn 150. Who has the lower opportunity cost? I could afford to pay him at least 150 and keep the difference. If I did it my self, I would not have anything to keep. Does this make sense? I would be better off to earn the 300 and pay him 200 right?
Hello
ReplyDeleteThe video is informative for the most part. I understand how you're better off leaving the job for your son. However, I'm confused as to why your son is better off mowing the lawn instead of earning SR 150 at McDonalds?
Are you going to pay him (> SR 150) from the SR 900 you'll earn doing economics while he mows?
Thank you
Abdulrahman Aldeghaither
The idea is that I can earn 300 and my son can earn 150. Who has the lower opportunity cost? I could afford to pay him at least 150 and keep the difference. If I did it my self, I would not have anything to keep. Does this make sense? I would be better off to earn the 300 and pay him 200 right?
ReplyDeleteClear! Thank you for explaining.
DeleteAbdulrahman Aldeghaither