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Economic Assignment - Essay Example

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Summary to essay on topic "Economic Assignment"
The idea here is to calculate the comparative advantage of both Phil and Francis in accomplishing each of the above tasks. If Phil has a comparative advantage of producing financial statements relative to Francis then he should specialize in the production of Financial Statements .The contrary will apply if he is specialized in answering more phone calls.
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Economic Assignment

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Download file "Economic Assignment" to see previous pages... This means that none of the two financial planners is self sufficient to do both the preparing of financial statements and answering of phone calls. The opportunity cost of Francis not preparing the financial statements is the same as the opportunity cost of Phil not answering phone calls. Hence nothing shall be lost in terms of opportunity cost if each were to be assigned his special duties.
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