Project 01 Flashcards
Marc and Josh have a project that must be completed for a business class. The project involves doing a series of calculations and writing a report.
It would take Marc 8 hours to do the required calculations and 8 hours to write a report.
It would take Josh 15 hours to do the calculations and 30 hours to write the report.
For each option bellow, show how much time is spent on each task and the total time on the project.
A) how much time would it take the two to complete the project if they divide the calculations equally and the writing equally?
Answer A)
If both tasks are divided equally, it will take 11.5 hours for the calculations (4 hours for Marc and 15 hours for Josh), for a total 30.5 hours. (11.5 hours for calculations, and 19 hours for writing)
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Calc (hrs). Writ (hrs). Tot
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Marc. 8. 8. 16
Josh. 15. 30. 45
If both divide equally
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Calc. Writ
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Marc. 4. (8/2). 4. (8/2)
Josh. 7.5 (15/2). 15. (30/2)
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Total. 11.5. 19. 30.5
Marc and Josh have a project that must be completed for a business class. The project involves doing a series of calculations and writing a report.
It would take Marc 8 hours to do the required calculations and 8 hours to write a report.
It would take Josh 15 hours to do the calculations and 30 hours to write the report.
For each option bellow, show how much time is spent on each task and the total time on the project.
C) if Marc and Josh have the sMe opportunity cost of $10 per hour, is there a better solution than for each to specialize in calculating or writing?
Answer C)
If Josh specializes in calculating, his opportunity cost will be $150
Josh would be better off if he paid Marc any amount less than $150 to do the calculating.
Since Marc’s opportunity cost of doing the calculations is only $80, he would be better off if Josh paid him between $80 and $150 to do the calculations.
In this case, Marc will do both the writing and calculating for the project, and the total time spent on the project would be 16 hours.
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Calc (hrs). Writ (hrs). Tot
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Marc. 8. 8. 16
Josh. 15. 30. 45
If the opportunity cost $10 per hours
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Calc. Writ
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Marc. $80. $80
Josh. $150. $150
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Marc and Josh have a project that must be completed for a business class. The project involves doing a series of calculations and writing a report.
It would take Marc 8 hours to do the required calculations and 8 hours to write a report.
It would take Josh 15 hours to do the calculations and 30 hours to write the report.
For each option bellow, show how much time is spent on each task and the total time on the project.
B) If both Marc and Josh decide to both contribute to the project, how much time would it take the two to complete the project, if they use comparative advantage and specialization in calculating or writing?
Answer B)
The comparative advantage in this question will go to the person who has the lower opportunity cost per each task, whether writing or calculating.
The more time spent on a particular task is a negative outcome, thus the more time spent on a task creates a lower opportunity cost for the person performing that task.
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Calc (hrs). Writ (hrs). Tot
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Marc. 8. 8. 16
Josh. 15. 30. 45
If use comparative advantage:
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Calc. Writ
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Marc. 1. 1
Josh. 0.5 (15/30). 2 (30/15)
For each hour spent calculating, Josh loses 2 hours of writing, while Marc loses 1 hour of writing.
As such, Josh has comparative advantage in calculating.
For each hour spent writing, Josh loses 0.5 hour of calculating, while Marc loses 1 hour of calculating.
As such, Marc has the comparative advantage in writing.
If Josh specializes in calculating and Marc specializes in writing, it will take 23 hours to complete the project. (8 hours for Marc to write and 15 hours for Josh to calculate).
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