Friday, July 15, 2011

Despite specialization and comparative advantage, household production still exists because for some households

ECONOMICS

Multiple Choice

Despite specialization and comparative advantage, household production still exists because for some households

a.the opportunity cost of production at home is greater than the cost of purchasing the good in the market

b.production at home is less costly than purchasing the good in the market

c.the value of home production exceeds the sunk cost of home production

d.the value of home production is ignored

e.food and clothing expenditures represent a small portion of their total budget

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