The kitchen manager at an italian restaurant is deciding what assignments he should give to his
two cooks, john and david. john can make 25 pizzas or 40 servings of pasta per hour and david
can make 20 pizzas or 30 servings of pasta. which of the following should be the manager's choice?
a) david will make pizza because he has comparative advantage in making pizza.
b) john and david both will spend half their time making pizza and half their time making
pasta because each has a comparative advantage in making pizza.
c) fire david because he is not as productive as john. john will do both jobs.
d) john will make pizza because he has comparative advantage in making pizza.

Acoase solution to a problem of externality ensures that a socially efficient outcome is to

Laws corporation is considering the purchase of a machine costing $16,000. estimated cash savings from using the new machine are $4,120 per year. the machine will have no salvage value at the end of its useful life of six years and the required rate of return for laws corporation is 12%. the machine's internal rate of return is closest to (ignore income taxes) (a) 12% (b) 14% (c) 16% (d) 18%

While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage. in the context of this scenario, which of the following statements is true? a. the industry for cell phones with holographic keyboards will face greater competition than the tablet industry. b. while the industry for cell phones with holographic keyboards will focus more on product innovation, the tablet industry will focus more on process innovation. c. while the industry for cell phones with holographic keyboards can reap the benefits of economies of scale, the tablet industry will experience no such benefits. d. the industry for cell phones with holographic keyboards will face price competition, whereas, in the tablet industry, the mode of competition will be non-price.