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Problem: Gary and Diane must prepare a presentation. As part of their presentation, they must do a series of calculations and prepare 50 PowerPoint slides. It would take Gary 10 hours to do the required calculation and 10 hours to prepare the slides. It would take Diane 12 hours to do the calculations and 20 hours to prepare the slides.
Required:
Question 1: How much time would it take the two to complete the project if they divide the calculations equally and the slides equally?
Question 2: How much time would it take the two to complete the project if they use comparative advantage and specialize in calculating or preparing slides?
Question 3: If Diane and Gary have the same opportunity cost of $5 per hour, is there a better solution than for each to specialize in calculating or preparing slides?
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