Conan O'Brien Hosts the Conan Show and Andy Richter, His

question 126

Multiple Choice

Conan O'Brien hosts the Conan show and Andy Richter, his sidekick, writes for it. Conan needs 4 hours to rehearse and host a good show. It takes Andy 10 hours to do the same. Conan writes one usable joke in an hour, but Andy needs 2 hours to do the same. If each party produces according to his comparative advantage:

• A) Andy will host and Conan will write.
• B) Andy will host and Andy will write.
• C) Conan will host and Conan will write.
• D) Conan will host and Andy will write.

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Definitions:

Activity Level

The degree of operational intensity or volume of production in a business, often influencing costs and revenues.

Contribution Margin

The amount by which sales revenue exceeds variable costs, indicating how much revenue contributes toward covering fixed costs and generating profit.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced.

Cost Of Goods Sold

The total cost directly associated with producing or acquiring the goods sold by a business during a particular period, including materials and labor.