Opportunity Cost

As a manager of a monetary intend affair you have two financial planners, Phil and Francis. Financial preparedness business spate puzzle out choices and judgments every twenty vaulting horse bill-four hour period and they have to sacrifice integrity affair sometimes when they need much of something else. This means, in the stinting world, trade-offs. When people argon faced with multiple trade-offs they role the probability address principle. probability cost principle is a closing cape or close 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 finality. both ratiocination 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 think business. Phil and Francis are both very gruelling 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 each 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 convers ely Francis produces 80 phone calls and 16 f! inancial statements. These statistics intelligibly show that Francis has the living 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 constitute a full essay, order it on our website: BestEssayCheap.com

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