Question

As a manager of a financial planning business you have two financial planners, Phil and Francis. In an hour, Phil can produce either one financial statement or answer the phone 8 calls,while Francis can either produce 4 financial statements or answer 10 phone calls. Does either person have an absolute advantage in producing both products? should these two planners be self-sufficient or specilize? Be sure to show your work.

Answer 1

Take a shot. What do you think. Hint: the planners should specialize.

Answer 2

As a manager of a financial planning business you have two financial planners, Phil and Francis. In an hour, Phil can produce either one financial statement or answer 8 phone calls, while Francis can either produce 2 financial statements or answer 10 phone calls. Does either person have an absolute advantage in producing both products? Should these two planners be self-sufficient (each producing statements and answering phones) or specialize? Be sure to show your work.

Answer 3

I have no clue.