Tiger Woods, a professional golfer, pays a garage mechanic to change the motor oil of his car even though he can do the work himself. Which of the following best explains why Tiger Woods does not change the oil himself?

Question

Quizplus · Accepted Answer

Tiger Woods has a higher opportunity cost of changing oil because his time is more valuable spent practicing and playing golf, while the garage mechanic has a lower opportunity cost since it is their profession and they are likely more efficient at it. Therefore, Tiger Woods is better off paying the garage mechanic to change the oil. This is a concept of comparative advantage in which individuals or countries specialize in producing goods or services that they can produce at a lower opportunity cost than others.

Tiger Woods, a Professional Golfer, Pays a Garage Mechanic to Change