Author Question: You are more likely to hire your teenage child to cut your lawn than a landscaping firm a. since ... (Read 55 times)

Starlight · **on:** Jul 1, 2018

You are more likely to hire your teenage child to cut your lawn than a landscaping firm
a. since the teenager is paid each time when she finishes and the landscaping firm bills your credit card each month
b. if the teenager has a lower opportunity cost of cutting the lawn than the landscaping firm does
c. because the teenager is less likely to have the specialized tools necessary to complete the job quickly
d. due to the bounded rationality of the diversified landscaping firm
e. when it does not take a substantial amount of time and effort to find a reputable landscaping firm to do the job

Question 2

You are more likely to do-it-yourself than hire a plumber to repair a leaky drain pipe
a. as the tax rate on your earned income dramatically decreases
b. if the opportunity cost of your time decreases
c. the less knowledge and experience in plumbing repair work that you possess
d. if you already own the specialized tools required to complete the repair work
e. as the transaction cost of the do-it-yourself repair work increases