When would it be beneficial for the household enterprise to outsource some activities, for example, cooking?
When would it be beneficial for the household enterprise to outsource some activities, for example, cooking?
Homework Answers
Household enterprise means self employed people who are working on their own without employing any outside person in the business.
The outsourcing of some activities like cooking, etc shall be beneficial when the time saved from such outsourcing results in more economic benefit.
Let us take and example to understand the situation.
Suppose the cost of outsourcing cooking is $ 10 per hour. The total hours required for cooking are 4 hours. The total cost of outsourcing cooking will be $40 per day.
The outsourcing will only be beneficial when the above saved four hours can be invested in business and at least $40 are earned.
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