Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 36

ANALYZING MANAGERIAL DECISIONS: Comparative Advantage in the Workplace
You are a manager of a division of a company that is responsible for the final assembly of two computer products, modems and keyboards. You manage two employees, Julio and Chenyu, who each work 8 hours per day. Currently you have assigned both Julio and Chenyu to spend the first 7 hours of the day assembling keyboards and the last hour assembling modems. Julio can assemble 2 modems per hour and 14 keyboards per hour. Chenyu is more highly skilled in both activities. She averages 3 modems per hour and 15 keyboards per hour.
What are Julio's opportunity costs for assembling modems and keyboards What are Chenyu's Does either employee have a comparative advantage in assembling one of the products