Question
Jacques and Kyoko run a catering business in which they have two major tasks: getting new clients and preparing food for events and parties. It
Jacques and Kyoko run a catering business in which they have two major tasks: getting new clients and preparing food for events and parties. It takes Jacques 16 hours to prepare the food for an event and 4 hours of effort to get each new client. For Kyoko, it takes 6 hours to prepare food for an event and 3 hours to get a new client.
In this scenario, ..... has an absolute advantage in food preparation, and .... has a comparative advantage in food preparation.
Suppose that initially, Jacques and Kyoko are splitting both tasks for a large number of events. Then they decide to start shifting some work according to the principle of comparative advantage. In particular, the person with the comparative advantage in food preparation will take over preparing food forone more eventby taking the necessary time away from getting more clients, and the other person will use the freed-up time from not preparing food for one event to get more clients.
As a result, the total number of events for which food is prepared will remain unchanged, but the number of new clients will increase by ....?
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