"Suppose that, initially, both Jerome and Anita spend four hours each day doing floral arrangements and two hours each day doing deliveries. Now suppose they change their tasks, so that each individual does nothing but the task in which she or he has a comparative advantage. How many more floral arrangements and deliveries could they produce each day"

Davis Florist has two employees, Anita and Jerome, and two tasks that need to be completed, floral arrangements and floral delivery. It takes Anita 30 minutes to finish one floral arrangement and 40 minutes to make a delivery. It takes Jerome 10 minutes to finish one floral arrangement and 30 minutes to make a delivery. Each worker works six hours per day.

answer : 4 Floral arrangements and 2 Floral deliveries

Explanation:

Number of hours spent on Floral arrangements = 4

number of hours spent on Deliveries = 2

The tasks where each staff have comparative advantage is a task they do better and faster when doing both tasks ( i.e. A task with a lower opportunity cost )

For Jerome this task is ; Floral arrangements

For Anita this task is ; Deliveries

because They both have a lower opportunity cost here

Determine How many more floral arrangements and deliveries could they produce each day

There will be an additional 4 Floral arrangements and 2 additional Floral deliveries

To determine additional Floral arrangement we will consider Jerome

= (( 4 * 60 ) / 10 )

= 24 / 6 = 4