Jack and Catherine Have a Cooperative Project That Must Be

question 120

Essay

Jack and Catherine have a cooperative project that must be completed for a business class. The project involves doing a series of calculations and writing a report. It would take Jack 10 hours to do the required calculation and 10 hours to write the report. It would take Catherine 12 hours to do the calculations and 20 hours to write the report.
a. How much time would it take the two to complete the project if they divide the calculations equally and the writing equally?
b. How much time would it take the two to complete the project if they use comparative advantage and specialise in calculating or writing?
c. If Catherine and Jack have the same opportunity cost of $5 per hour, is there a better solution than for each to specialise in calculating or writing?