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Despite Specialization and Comparative Advantage, Household Production Still Exists Because

Question 96

Multiple Choice

Despite specialization and comparative advantage, household production still exists because for some households _____.


A) the opportunity cost of producing a good at home is greater than the cost of purchasing the good in the market
B) producing a good at home is less costly than purchasing the good in the market
C) the value of home production exceeds the sunk cost of home production
D) the average cost of home production is higher than the marginal cost of home production
E) the expenditure on food and clothing represents a small portion of their total budget

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