The law of comparative advantage implies that a doctor who is also a talented auto mechanic should
A)get a part-time job at a gas station.
B)do his or her own auto repairs and those of his or her neighbors.
C)hire a professional mechanic to repair his or her car.
D)only repair the cars of other doctors.

Question

Quizplus · Accepted Answer

The law of comparative advantage suggests that individuals and entities should engage in the production of goods and services for which they have a lower opportunity cost. In this case, even though the doctor is a talented auto mechanic, their time is likely more valuably spent practicing medicine, from which they can earn more. Thus, hiring a professional mechanic to repair his or her car allows the doctor to focus on their area of greatest economic advantage.

The Law of Comparative Advantage Implies That a Doctor Who