Question

Suppose a famous baseball player, Alex Rodriguez, hires a high school student to paint his house. Which of the following is most likely TRUE?

Answer 1

Answer:

The opportunity cost of painting a house is higher for Alex Rodriguez than for the high school student

Explanation:

          An opportunity cost may be defined as a loss of any potential gain in the group of certain alternatives out of which one alternative is chosen.

          In the context, when Alex Rodriguez, a famous player hires a student in order to paint his house, it seems that the opportunity cost is higher for Alex Rodriguez when compared to the high school student whom he hired to pain the house. This is because the school student is not  professional in painting skills but Alex would have hired a professional painter then the painter would have done the job better than the school student.