Question

We all know that LeBron James has a very large house in Akron, OH.

please answer/discuss the following question. Let us say that James can mow his lawn faster than the high school student that lives next door to him. Moreover, let us assume that it is a push-mower. "Should LeBron James mow his own lawn?" Why?

Hint: use terms such as opportunity cost, absolute advantage and comparative advantage to explain your reasoning.

Answer 1

No, the opportunity cost of Lebron James moving his own lawn is very high as compared to the opportunity cost of his high school student doing the same job.

As the question suggests Lebron James has a very large house and a push-mower, it will take a long time to mow his lawns. By that time he can participate or practice in his basketball matches and earn a huge amount of money. If he mows those laws himself he will be loosing all that, so he can just hire his neighbor who is also his classmate to do the job whose loss while mowing laws will be less compared to Lebron James. The opportunity cost of Lebron mowing his laws is very high.