Question 210100: 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 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 (each producing statements and answering phones) or specialize? Be sure to show your work.
Answer by silencehurts(5)   (Show Source):
You can put this solution on YOUR website! 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 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 (each producing statements and answering phones) or specialize? Be sure to show your work.
f.s. calls
phil = a = 1 b = 8 talktime = time / # of calls
francis = c = 4 d = 10 productivity time = time / # of financial statement
time = 1hr = 60min
productivity time for financial statement
phil = 60 / 1
= 60min/fs
francis = 60 / 4
= 15min/fs
talktime
phil = 60 / 8
= 7.5min/call
francis = 60 / 10
= 6min/call
francis is more productive, he can make more financial statement in an hour and can also handle more calls than phil.
i can say they should have separate work. with receiving calls, Phil can concentrate on receiving calls so Francis can do concentrate in doing more financial statement
and Francis can adjust in making 2 financial statement and receive 5 calls in an hour if needed.
for Francis
let a=prod time /fs b=talk time /call
60min = 2a + 5b
60min = 2fs(15min/fs) + 5calls (6min/calls)
60min = 30 min + 30 min
60min = 60min
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