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Question Five Assume that Benjamin is better at repairing computers than anyone in the world. Tell...

Question Five

Assume that Benjamin is better at repairing computers than anyone in the world. Tell a story in which Benjamin would be better off hiring someone else to repair his computer.

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Answer #1

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Benjamin will be better off hiring someone else to repair his computers in case he has comparative advantage in other good. Suppose he can repair his computer but at the same tyke has comparative advantage as lawyer. Assume he earns 1000 dollars per day as lawyer Whileas repairing his own computer takes one day and at the most he can save 400 by repairing it himself. Then it is better for him to act as lawyer because in this case he earns 1000-400=600 dollars more as lawyer.

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