Card 32 / 100: Why is Marcia the storekeeper willing to pay up to $40 to have someone clean her store at the end of the day?
Answer:
If Marcia has to clean the store herself, she sacrifices 30 minutes that she could have spent pushing sales. Because it takes her an average of 15 minutes to close a sale, that means Marcia loses out on 2 typical sales if she doesn't hire someone to clean for her. Because the text assumes Marcia nets an average of $20 per sale, her 30 minutes is worth $40 to her, and that is the most she would be willing to pay someone else to do her cleaning.
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