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ECO 201 – Jill and Jack both have two pails

by | Dec 1, 2023 | Posted Questions

Jill and Jack both have two pails that can be used to carry water down from a hill. Each makes only one trip down the hill, and each pail of water can be sold for $5. Carrying the pails of water down requires considerable effort. Both Jill and Jack would be willing to pay $2 each to avoid carrying one bucket down the hill, and an additional $3 to avoid carrying a second bucket down the hill.

I need an explanation. If they avoid 2 buckets wont they pay 5 dollars as a cost which is equal to the selling amount and thu get 0 each?

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