8. John has been in the habit of mowing Willa's lawn each week for $20. John's opportunity cost is $15, and Willa would be willing to pay $25 to have her lawn mowed. What is the maximum tax the government can impose on lawn mowing without discouraging John and Willa from continuing their mutually beneficial arrangement

The maximum tax the government should impose on lawn mowing without discouraging either of the party in the mutual benefit is a tax less than $10. That is form $9 to $1

A tax less than $10 is acceptable because the opportunity cost is $15 and the Price Willa can pay willingly is $25. This means that if the government should impose a tax of $9, John will be making a profit of $1 from the business, while Willa won't be discouraged because she pays what she is willing to pay.

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy

answer; the cpi;