Question
Q// As the manager at a local florist, you supervise two employees, Anita and Jerome.There are two tasks that need to be completed: floral arrangements
Q// As the manager at a local florist, you supervise two employees, Anita and Jerome.There are two tasks that need to be completed: floral arrangements and flower delivery. It takes Anita 30 minutes to finish one floral arrangement and 40 minutes to make one delivery. It takes Jerome 15 minutes to make one floral arrangement and 30 minutes to make one delivery.
A- Who has an absolute advantage in each task?
B- What are Anita and Jerome's opportunity costs of making floral arrangements?
C- What are Anita and Jerome's opportunity costs of making one delivery?
D-Who has comparative advantage in floral arrangements? What about deliveries?
E- Suppose, initially, that Jerome and Anita each spent 4 hours each day doing floral arrangements and 2 hours each day making deliveries. If you changed their tasks so that each individual did nothing but the task that they had a comparative advantage, how many more floral arrangements would your store make, and how many more deliveries?
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