Margaret owns and is the head chef of a very famous restaurant which serves new recipes weekly in downtown, LA. She opens her restaurant doors twice in a day, lunch and dinners only, and gets an average earning of $2,000 per opening. The only problem is that she must spend the afternoons lately creating new dishes in the test kitchen because she's running out of recipes, leaving her to only open her restaurant at dinner time. So, she hires another chef for $150 a day to be the head chef in the test kitchen.

Now, she can cook and manage her kitchen for both openings and earns double, $4,000 a day.

A perfectionist, Margaret soon discovers that it takes the new chef a full day to do what she did in just half a day.

1. Analyze who has an absolute advantage in doing the two jobs? Explain briefly
2. Should Margaret fire the new chef and create new dishes herself? Explain briefly by comparing Margaret's earnings with and without the chef's help.