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Strategic Management and Business Policy
Essay specific features
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Written by:
Carolyn B
Date added:
March 24, 2016
Level:
University
Grade:
A
No of pages / words:
2 / 295
Was viewed:
2964 times
Rating of current essay:
Essay content:
In fact, someone can be completely unskilled at doing something, yet still have a comparative advantage at doing it!" (The Library of Economics and Liberty, 2004)
If you add the numbers for both Phil and Francis for a week, you can see that Francis has an absolute advantage over Phil when it comes to producing both products...
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Phil's opportunity cost of one financial statement versus answering 10 phone calls. This is almost similar with what Francis's opportunity cost, three financial statements versus 12 phone calls.
It would benefit Francis to specialize in handling the financial statements. Francis has an absolute advantage in producing both products because he has a comparative advantage in financial statements...
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