A freelance singer-songwriter is planning the restoration of a recently purchased civil war-era farmhouse. While he professes an enjoyment of, and talent in the construction trades, the theory of comparative advantage implies that .A. he should concentrate on the restoration work since his out-of-pocket costs will be much lower than if he hires professionals.
B. he ought to do as much of the work himself as possible since imports (in this case, professional contractor services) should always be restricted to those things that cannot be done internally.
C. the income lost while away from music will likely exceed the savings realized by doing the work himself, thus, he should hire professionals to do the restoration work.
D. self-sufficiency is advantageous, hence he should split his time between music and construction.
E. the value of what he imports (in this case, professional contractor services) must equal the value of what he exports (songs).

A freelance singer-songwriter is planning the restoration of a recently purchased civil war-era farmhouse. While he professes an enjoyment of, and talent in the construction trades, the theory of comparative advantage implies that the income lost while away from music will likely exceed the savings realized by doing the work himself, thus, he should hire professionals to do the restoration work.

Explanation:

The ability of economy to involve in production of goods and services at an opportunity cost which is lower in nature when compared with the trading partners. This will help the company to sell a product or service at a cot lower than the cost of the competitors. This will result in the company achieving the comparative advantage.

In the example given, a freelance singer can hire some professionals for the purpose of restoration work. This is because the income the singer gets from the freelancing work will be lost or it will be exceeded the savings , when he does the restoration work by himself. Hence he can hire some professionals for this purpose.

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