Answer:
2- Have each member specialize in the role that they are best in, to take advantage of benefits from specialization.
Explanation:
Here are the options
1- Continue with the current plan, as economies of scale should eventually kick in.
2- Have each member specialize in the role that they are best in, to take advantage of benefits from specialization.
3- Abandon the band, as continued practice is doomed to suffer diminishing marginal returns.
4- Invest their remaining savings in new instruments, as they are at a point where the marginal product of capital exceeds the marginal product of labor.
5- Change the rotation to be random rather than equal, to take advantage of heteroskedasticity.
Specialisation is when a person focuses on an activity in which they are efficient in or have a comparative advantage in
A person has a comparative advantage in production if he produces at a lower opportunity cost when compared to other people
Jaco seems to be efficient at playing bass, thus he should specialise in this activity
Jonny seems to be efficient at playing the guitar, thus he should specialise in this activity
An advantage of specialisation : Increased efficiency as a result of carrying out the same activity multiple time.
