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This is known as an absolute advantage according to O' Sullivan and Sheffrin (Economics, 2006) because Francis has the ability to produce a good at a lower absolute cost than Phil.
For calculations it is assumed there are eight hours in a standard day and there are five days in a work week. To decide which work method would be best for Phil and Francis I first calculated self-sufficient rates per day. Splitting the day exactly in half and then multiplying each field by four allows the following:
? Phil can produce 4 financial statements and 32 phone calls per day.
? Francis is able to produce 8 financial statements and 40 phone calls per day...
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