Homework answers / question archive / _   Jake and Vicky are partners at a management consulting firm

_   Jake and Vicky are partners at a management consulting firm

Economics

Share With

_   Jake and Vicky are partners at a management consulting firm. They  are   trying determine which of them has a comparative advantage in ing4.  
the 100 slides required for a sales pitch to a prospective client.  
(  
Jake can create 25 slides per hour. For other activities, he can bill clients $500 per hour. Jake's opportunity cost of creating slides is lir per slide. 
Vicky's opportunity cost of creating slides is 25% higher than Jake's. However, as the junior partner, her billing rate is 20% lower. Based on all of these facts, 1? has a comparative advantage in creating slides. 
Grade It Now 
Save & Continue 
Continue without saving