The kitchen manager at an Italian restaurant is deciding what assignments he should give to his two cooks, John and David. John can make 25 pizzas or 40 servings of pasta per hour and David can make 20 pizzas or 30 servings of pasta. Which of the following should be the managerʹs choice?
A) David will make pizza because he has comparative advantage in making pizza.
B) John and David both will spend half their time making pizza and half their time making pasta because each has a comparative advantage in making pizza.
C) John will make pizza because he has comparative advantage in making pizza.
D) Fire David because he is not as productive as John. John will do both jobs.
Correct Answer:
Verified
Q260: One of the opportunity costs of economic
Q261: Suppose Joe can prepare 10 sandwiches or
Q262: In an eight-hour day, Andy can produce
Q263: Betty and Ann live on a desert
Q264: Blue Violet's
Q266: An economy produces only food and shelter.
Q267: In an hour, Andy can make either
Q268: Suppose that in an hour Joe can
Q269: Tom takes 20 minutes to cook an
Q270: Suppose Joe can prepare 20 sandwiches or
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents