A freelance singer-songwriter is planning the restoration of a recently purchased civil war-era farmhouse. While he professes an enjoyment of, and talent in the construction trades, the theory of comparative advantage implies that the income lost while away from music will likely exceed the savings realized by doing the work himself, thus, he should hire professionals to do the restoration work.
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Explanation:</u></h3>
The ability of economy to involve in production of goods and services at an opportunity cost which is lower in nature when compared with the trading partners. This will help the company to sell a product or service at a cot lower than the cost of the competitors. This will result in the company achieving the comparative advantage.
In the example given, a freelance singer can hire some professionals for the purpose of restoration work. This is because the income the singer gets from the freelancing work will be lost or it will be exceeded the savings , when he does the restoration work by himself. Hence he can hire some professionals for this purpose.
Esta es una historia que nos enseña a aprovechar las crisis como motor de cambio y cómo no hay que rendirse ante las dificultades que se van presentando. La película comienza presentando la vida de William, cómo y dónde viven él y su familia, los problemas a los que se enfrentan en el día a día…
