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Luba_88 [7]
2 years ago
14

Meagan, a contractor, is hired to install cabinets in a new home and has to decide whether to build the cabinets herself or purc

hase them from a local cabinet shop.
SAT
1 answer:
ipn [44]2 years ago
3 0

Meagan should build the cabinets herself only if she has a comparative advantage in the production of cabinets.

<h3>What is comparative advantage?</h3>

Comparative advantage can be defined as ability of an individual or business firm to produce goods and services at a lower opportunity cost than their rivals or trade partners.

The most important benefit of comparative advantage is that, it gives an individual or business firm the ability to sell their finished goods and services at a lower price in comparison with its close rivals (competitors) or trade partners. Thus, comparative advantage results in stronger sales margins for an individual or business firm.

In conclusion, Meagan should build the cabinets herself only if she has a comparative advantage in the production of cabinets.

Read more on comparative advantage here: brainly.com/question/14846093

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