Multiple Choice
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 per hour.Which is the manager's best choice?
A) Fire David because he is not as productive as John.John will produce both pasta and pizza.
B) David will make pizza because he has a comparative advantage in making pizza.
C) John and David will each spend half their time making pizza and half their time making pasta.
D) John will make pizza because he has a comparative advantage in making pizza.
E) Increase David's salary because with encouragement,he can increase his output.
Correct Answer:
Verified
Correct Answer:
Verified
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