Question

A computer systems engineer could paint his house, but it makes more sense for him to hire a painter to do it. Explain why?

Short answer

The engineer will have high opportunity cost in comparison to the painter if he paints on his own and is also not very well known of the painting.

Step-by-step solution

Economics

The opportunity cost for an economic deciison is the cost of giving up the second best alternative. In the production certain explicit as well as implicit or oppportunity cost is incurred.

Explanation for hiring a painter

For this specific case, Two issues will have to be considered. To begin with, the engineer's opportunity cost is higher than that of a painter because of his missed wages. Because the opportunity cost of employing a painter may be larger than the cost of hiring a painter, the engineer saves money by hiring a painter. Second, a painter has a specialty that an engineer does not have owing to continual practice and expertise (comparative advantage). It makes more sense for him to employ a painter in this case.