Absolute advantage in producing products


Problem:

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?

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Strategic Management: Absolute advantage in producing products
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