Sergei makes millions of dollars a year playing hockey. Sergei is also the best tailor in his hometown in Russia. Why is Sergei unlikely to make his own clothes?

Question

Sergei makes millions of dollars a year playing hockey. Sergei is also the best tailor in his hometown in Russia. Why is Sergei unlikely to make his own clothes?​

Quizplus · Accepted Answer

Sergei's high earnings from hockey suggest that his marginal revenue product in hockey is likely much higher than his potential earnings from tailoring clothes. Therefore, it makes more sense for him to focus on his hockey career and pay someone else to make his clothes, rather than taking time away from hockey to make them himself. This represents a high opportunity cost for Sergei. Option D is not a relevant factor, as Sergei's comparative advantage in tailoring does not necessarily mean he should make his own clothes, especially if he has a higher earning potential in another field.

Sergei Makes Millions of Dollars a Year Playing Hockey