Tom walks Jim’s dog once a day for $50 per week. Jim values this service at $60 per week, while the opportunity cost of Tom’s time is $30 per week.
Tom walks Jim’s dog once a day for $50 per week. Jim values this service at $60 per week, while the opportunity cost of Tom’s time is $30 per week. The government places a tax of $35 per week on dog walkers.
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