We are currently studying Coase's Theory of the Firm in our economics class.

My instructor asked this question, and I am genuinely lost:

"I love to do yard work! I know it's a bit strange but I enjoy mowing and working in the flower beds. One of the perks is the price; I work for free! This has always been a good help in keeping our yard looking great! Well, now that we are getting a bit older, I will now have to hire someone to complete some of my yard work; I'm not giving it up altogether! So what will that do to my budget? How would this relate to Coase's Theory of the Firm?"