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?© BrainMass Inc. brainmass.com October 9, 2019, 11:37 pm ad1c9bdddf
Absolute advantage is a situation where an entity can produce a good or a service using less resources than some other entity.
Comparative advantage is a situation where an entity can produce a good or a service at a lower opportunity cost than some other entity.
In this case Phil can produce ...
Absolute or Comparative Advantage are assessed.