Chapter 1: Problem 4

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

Expert verified

Hiring a painter makes more sense for a computer systems engineer due to the high opportunity cost of their time, the expertise and efficiency of the professional painter, and the time commitment required for painting a house. By hiring a painter, the engineer can allocate his time to more productive and income-generating activities while ensuring a better-quality and time-efficient painting job.

Step by step solution

Define opportunity cost

Opportunity cost is the value of the next best alternative that must be given up when making a decision. In this case, the computer systems engineer must choose between painting his house himself and using that time to work or do something else.

Assess the value of the computer systems engineer's time

The computer systems engineer likely earns a high hourly wage based on his expertise and skills. This means that the time he spends on any activity has a significant opportunity cost in terms of the income or the value of the work he could have done instead.

Consider the expertise of a professional painter

A professional painter has experience and skills that allow them to complete the painting job effectively, efficiently, and to a high standard. By contrast, the computer systems engineer may not be as skilled or efficient in painting as a professional painter, leading to a longer time spent on the task and potentially lower-quality results.

Factor in the time commitment

Painting a house requires a significant amount of time, which the computer systems engineer may not have available due to work commitments or personal preferences. Hiring a painter would allow the engineer to allocate his time to other productive activities, such as working or enjoying leisure time.

Calculate the opportunity cost

If the computer systems engineer chooses to paint his house himself, the opportunity cost would be the amount of income he could have earned during the time spent painting or the value of other productive activities he could have engaged in. Hiring a painter typically costs less than the potential lost income for the engineer, making it more cost-effective to pay for the painting service.

Explain why hiring a painter makes more sense

Hiring a painter to paint his house makes more sense for the computer systems engineer because it allows him to allocate his time to more productive activities that align with his expertise and generate higher income. Additionally, the painter's expertise ensures a better-quality and time-efficient job, making the expense worthwhile by saving the engineer's valuable time and providing better results.

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