James and Linda Must Prepare a Presentation for Their Marketing

question 214

Essay

James and Linda must prepare a presentation for their marketing class. As part of their presentation, they must do a marketing plan and prepare 40 PowerPoint slides. It would take James 5 hours to do the required plan and 5 hours to prepare the slides. It would take Linda 6 hours to do the plan and 10 hours to prepare the slides.
a. How much time would it take the two to complete the project if they divide the writing of the marketing plan equally and the development of the slides equally?
b. How much time would it take the two to complete the project if they use comparative advantage and specialize in writing the marketing plan or preparing slides?
c. If James and Linda have the same opportunity cost of $5 per hour, is there a better solution than for each to specialize?

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Definitions:

Disadvantages

The drawbacks or unfavorable aspects associated with a particular decision, action, or strategy.

P/E Ratios

Price-to-Earnings Ratio, a valuation measure comparing the current share price of a company to its per-share earnings, indicating the dollar amount an investor can expect to invest to receive one dollar of the company's earnings.

Valuation

The process of determining the present value of an asset or a company.

Comparing Firms

The analysis, often financial-based, used to compare the performance, efficiency, and health of different companies.