Opportunity Cost

As a manager of a monetary planning billet you have two fiscal planners, Phil and Francis. In an hour, Phil tidy sum scram both one pecuniary line of reasoning or repartee 8 audio calls, while Francis can either disclose 4 financial statements or answer 10 phone calls. Does either person have an coercive favour in producing both products? Should these two planners be egotism-sufficient (each producing statements and answering phones) or specialize? Be sure to show your stop a shit. In this assignment, I will establish whether or not my financial planners Francis and Phil should be specialized or self sufficient. I will overly discuss the opportunity personify of each, absolute and comparative advantage. concord to the information provided in the scenario of the assignment, Phil is surefooted of producing octonary (8) prognosticate calls or one (1) financial statement within a 60 minute period. My other financial planner, Francis is capable of producing ten (10) telephone calls or four (4) financial statements in a cardinal minute period as well. When figured into a work day consisting of eight (8) hours, Phil produces lxiv (64) phone calls or eight (8) financial statements. Francis exceeds these figures by producing lxxx (80) telephone calls or 32 (32) financial statements, giving her what I believe to be an absolute advantage in twist out either good.

yield of the financial statements is four measure higher by Francis compared to Phil. In addition Francis also makes 16 (16) more telephone calls than Phil. specialness will increase the constitutional amount of outp ut (O?Sullivan & ampere; Sheffrin, 2006). It! is my thoughts that Phil needfully to be specializing in making telephone calls and Francis needs to be specializing in producing financial statements. On the other hand, if I were to make this decision, I would be losing sixteen (16) phone calls a day that... If you want to motor a full essay, swan it on our website: OrderCustomPaper.com

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