Mitch and Terese are partners at a management consulting firm. They are trying to determine which of them has a comparative advantage in creating the 50 slides required for a sales pitch to a prospective client. Mitch can create 10 slides per hour. For other activities, he can bill clients $500 per hour. Mitch's opportunity cost of creating slides isper slide. Jamal's opportunity cost of creating slides is 30% lower than Bette's. However, as the senior partner, his billing rate is 25% higher. Based on all of these facts, has a comparative advantage in creating slides.

Answer and Explanation:

The computation of the Mitch opportunity cost of developing slides per slide is

= $500 ÷ 10 slides per hour

=  $50

Now it is given that

Jamal opportunity cost is 30% lower than

And, the billing rate is 25% higher

So, in this case

Mitch opportunity cost is

= $50 - ($50 × 30%)

= $35

And, the billing rate is

= $500 + 25%

= $600

So per slide is

= $600 ÷ $35

= 17.14 slides

Based on the above calculation, Jamal has the opportunity cost in creating the slides

consumer credit. an advantage is that it allows consumers to afford expensive goods and services now, increasing their standard of living. however, a disadvantage is that it creates a trap for debt, if people do not have self control, they may see themselves filing personal bankruptcy.

after cutting wages and benefits in order to increase profit .

apex~