Household production is more likely to occur when
A)it requires few specialized resources
B)technology makes it more costly than market production
C)tax avoidance is undesirable
D)less control over the final product is desirable
E)the opportunity cost of household production is high

Question

Quizplus · Accepted Answer

Household production is more likely to occur when it requires few specialized resources because households typically do not have access to a wide range of specialized resources or technologies that are required in market production. Therefore, they are more likely to engage in household production using basic resources that they already have at hand.

Household Production Is More Likely to Occur When