A team of three people in a research company is engaged in two activities:
a) collecting data and
b) running statistical process.
Each member of the team has different abilities in performing these tasks. Archie can collect data from 40 respondents or run 10 statistical processes in a day. Betty can collect data from 120 respondents or run 20 statistical processes in a day. Reggie can collect data from 90 respondents or run 30 statistical processes in a day.
a. If all three team members are involved in collecting data, how many respondents will they be able to collect data from in a day?
b. Which team member has absolute advantage in collecting data?
c. Which team member has absolute advantage in running statistical processes?
d. Complete the table below (you have to compute the opportunity cost and also mention the units).
Opportunity cost of collecting data
Opportunity cost of running statistical processes
e. Which team member has comparative advantage in collecting data? Why?
f. Which team member has comparative advantage in running statistical processes? Why?
g. If one of the three team members is to move from collecting data to running statistical processes, who should move to this task? Explain why.
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