Question

you manage two employees at the flower shop. they perform two tasks: caring for the displays of cut flowers and making flower arrangements to fill customer orders. in organizing your employees and assigning them tasks, you should: multiple choice assign the two tasks according to which worker has a comparative advantage in each task. assign the two tasks according to which worker has an absolute advantage in each task. g

Answer 1

The production possibilities frontier would not be a straight line because each worker would likely differ in her relative skills at grooming and giving flea baths and would therefore differ in the opportunity cost for performing each task.

What is Production Possibility Frontier (PPF)?

The production possibility frontier (PPF) is a curve on a graph that depicts the potential output of two goods whose production is dependent on the same limited resource. Another name for the PPF is the production possibility curve.

PPF is important in economics as well. For instance, it can show that a country's economy has achieved the maximum level of effectiveness.

The PPF illustrates that an increase in one commodity's production can only occur when the production of the other commodity falls.

Managers can use the PPF as a tool for making decisions when determining the best product mix for their organisation.

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