Question 1

Scenario 1: Joe loves being outside and has the opportunity to work at 2 possible jobs this summer. Joe purchased a lawnmower for $500 before he knew about his options. The lawnmower tool will allow Joe to mow yards and earn $1,500 in one summer. Joe was recently offered another job that involves running a river tubing operation on the local river. He would make $1,200 in one summer doing this. The costs he will incur with lawnmowing are $100 for transportation and $150 for supplies (gas, yard bags, etc). The cost he would incur for Raft Guiding are $100 for transportation and $50 for supplies. If Joe works as a river guide he would still have the lawnmower, as it is not returnable. He could loan it to his friends or family at no charge. Complete a differential analysis and determine what you recommend Joe should do