Assume that a lawyer and a secretary have been working together for two years. The lawyer suddenly realizes that he prepares legal briefs and types faster than the secretary. Upon learning this he decides to let his secretary go
Why might this be a mistake?
It might be a mistake if it turns out that the secretary had a comparative advantage in typing over the lawyer. In other words it is very likely and possible that the secretary and type at a lower opportunity cost than the lawyer. By firing the secretary he has confused absolute advantage with comparative advantage.
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When an organization sets up a self-contained unit, the risk management teams at the divisional levels become redundant
Indicate whether the statement is true or false
The following graph is the production possibilities curve of a nation:
Refer to the above graph. Which of the following combinations would be unattainable?
A. 8 drill presses and 1 bread
B. 7 drill presses and 2 bread
C. 10 drill presses and 4 bread
D. 2 drill presses and 3 bread