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Roland mows Karla's lawn for $ 2 5 . Roland's opportunity cost of mowing Karla's lawn is $ 2 0 , and Karla's willingness to
Roland mows Karla's lawn for $ Roland's opportunity cost of mowing Karla's lawn is $ and Karla's willingness to pay Roland to mow her lawn is $
Refer to Scenario Assume Roland is required to pay a tax of $ each time he mows a lawn. Which of the following results is most likely?
a Karla is willing to pay Roland to mow her lawn, but Roland will decline her offer.
b Karla now will decide to mow her own lawn, and Roland will decide it is no longer in his interest to mow Karla's lawn.
c Roland is willing to mow Karla's lawn, but Karla will decide to mow her own lawn.
d Roland and Karla still can engage in a mutuallyagreeable trade.
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