Answer to Question #208593 in Microeconomics for jean

Question

Evaluate the following statement, ‘a computer systems engineer could paint his house, but it makes more sense for him to hire a painter to do it.’

Answer 1

A computer system engineer should hire a painter to paint his house because in general the earning of a computer engineer is greater than a painter. Thus, the opportunity cost of painting home by the engineer is greater than the opportunity cost of hiring a painter (the lost earning by the engineer is greater than the cost of hiring a painter). However, another reason to hire a painter is specialization (cooperative advantage). A computer system engineer is specialized in his field. Similarly, the painter is specialized in painting. Thus, it is better to hire a painter to paint his house.