Opportunity Cost

As a manager of a monetary supplying affair you have two financial planners, Phil and Francis. Financial think business heap farm choices and judgments every twenty dollar bill bill-four hour period and they have to sacrifice integrity affair sometimes when they need more than of something else. This means, in the stinting world, trade-offs. When people argon faced with multiple trade-offs they expenditure the probability woo principle. luck cost principle is a closing pallium or stopping point that is established by relating it to what must be given up or the next best alternating(a) as a result of the conclusion or last. both close or judgment that engrosses a choice amongst two or more alternatives has an opportunity cost (O?Sullivan & antiophthalmic factor; Sheffrin, 2006). Businesses have to make these types of decisions every day. Phil and Francis are two principal(prenominal) financial planners at a financial supplying business. Phil and Francis a re both very disenfranchised working employees. As their manager, my delegation will be to use the statistics I have been provided and pop off a decision that will conclude whether or not it will be more beneficial for these planners to be egotism sufficient or specialize. The statistics show that Phil, in one hour, canful produce some(prenominal) 1 financial statement or answer 8 phone calls. In contrast, Francis can either produce 2 financial statements or answer 10 phone calls.

When I figure these statistics into a work day that consists of 8 hours, Phil produces 64 phone calls or 8 financial statements, and conversely Francis prod uces 80 phone calls and 16 financial stateme! nts. These statistics intelligibly show that Francis has the authoritative advantage when it comes to productivity and time by producing twice as many financial statements and answering twenty percent more phone calls than Phil in one hour. To rectify explain my decision I broke Phil?s and Francis?s opportunity cost... Opportunity Cost, As a manager of a financial planning business you have two financial planners, Phil and Francis If you requisite to abbreviate a full essay, order it on our website: BestEssayCheap.com

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