Specialization in Comparative Advantage: Boosting Productivity with Anita and Jerome

How can Anita and Jerome increase their daily production of floral arrangements and deliveries through specialization in their comparative advantage tasks?

a. Jerome has an absolute advantage in flower arrangements.
b. Anita's opportunity cost of making one floral arrangement is 0.75 deliveries.
c. Jerome's opportunity cost of making one floral arrangement is 3 deliveries.
d. Jerome has a comparative advantage in floral arrangements.
e. Anita has a comparative advantage in delivering.
f. If they specialize in their comparative advantage tasks, how many more floral arrangements and deliveries could they produce each day?

Increasing Productivity through Specialization

Specialization in comparative advantage tasks can significantly boost productivity for Anita and Jerome. By focusing on tasks where they have a comparative advantage, they can produce more floral arrangements and deliveries per day.

To maximize their daily production, Anita and Jerome should specialize in tasks where they have a comparative advantage. Anita has a comparative advantage in making deliveries, while Jerome excels in making floral arrangements.

Anita's opportunity cost of making one floral arrangement is 0.75 deliveries, indicating that she is more efficient in making deliveries compared to floral arrangements. On the other hand, Jerome's opportunity cost of making one delivery is 3 floral arrangements, highlighting his comparative advantage in floral arrangements.

When Anita specializes in making deliveries, she can complete 270 deliveries per day. Meanwhile, Jerome specializing in floral arrangements can produce 72 floral arrangements daily. This specialization results in an additional 150 deliveries and 12 floral arrangements per day, significantly increasing their total output.

By leveraging their comparative advantages, Anita and Jerome can enhance their productivity and efficiency in floral arrangements and deliveries, showcasing the benefits of specialization in economic activities.

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