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Vlada [557]
3 years ago
12

Sam and Teresa run a catering business in which they have two major tasks: getting new clients and preparing food for events and

parties. It takes Sam 10 hours to prepare the food for an event and 5 hours of effort to get each new client. For Teresa, it takes 12 hours to prepare food for an event and 3 hours to get a new client. In this scenario, has an absolute advantage in food preparation, and has a comparative advantage in food preparation. Suppose that initially, Sam and Teresa are splitting both tasks for a large number of events. Then they decide to start shifting some work according to the principle of comparative advantage. In particular, the person with the comparative advantage in food preparation will take over preparing food for one more event by taking the necessary time away from getting more clients, and the other person will use the freed-up time from not preparing food for one event to get more clients. As a result, the total number of events for which food is prepared will remain unchanged, but the number of new clients will increase by .
Business
1 answer:
Sergio [31]3 years ago
8 0

Answer:

The number of new clients will increase by

12/3 = 4

Therefore, the number of new clients will increase by 4.

Explanation:

In getting new client, Sam takes 5hours, while Terasa takes 3hours.

In preparing food, Sam takes 10hours while Teresa takes 12hours.

It can be seen that Sam has absolute advantage and comparative advantage in preparation of food, while Tesesa has absolute advantage and comparative advantage in getting new client.

Sam with the comparative advantage in food preparation will take over preparing food for one more event by taking the necessary time away from getting more clients, and Teresa will use the freed-up time from not preparing food for one event to get more clients.

Teresa will free up 12hours she used in the preparation of food.

Since she use 3hours to get new client, She will get

12/3, which equals 4 number of clients

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3.  KFC became popular thanks to its good chicken

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2. KFC follows a franchise management system, meaning each one is individually managed. It is not uncommon for one KFC to have high reviews while another, just down the street, is collecting bad press.

Opportunities :

1. By maintaining the same price point with new menu options, KFC is positioned to enter a new market without sacrificing the beloved chicken-focused meals

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2 years ago
A large life insurance company has decided to switch from using a strong fear appeal to a humorous approach. What are the streng
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So when the price of SUV rise by 15%, and it has a coefficient of 0.75, we can expect only 11.25% decrease in its demand. Still very small. This is because SUVs do not have many substitutes for it.

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