Question

The kitchen manager at an Italian restaurant is deciding what assignments he should give to his

two cooks, John and David. John can make 25 pizzas or 40 servings of pasta per hour and David
can make 20 pizzas or 30 servings of pasta. Which of the following should be the manager's choice?
A) David will make pizza because he has comparative advantage in making pizza.
B) John and David both will spend half their time making pizza and half their time making
pasta because each has a comparative advantage in making pizza.
C) Fire David because he is not as productive as John. John will do both jobs.
D) John will make pizza because he has comparative advantage in making pizza.

Answer 1

A) David will make pizza because he has comparative advantage in making pizza.

Step-by-step explanation:

Make Pizzas Serving make pizzas/serving pasta

25 40 0,63

20 30 0,67