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- Mine isn’t going so well either
- You can make that decision by analyzing who has the ability to provide a service at a lower opportunity cost than the other& who has the ability to to carry out a particular service more efficiently
- So how’s the hair business treating you guys?
- Not so well
- I can do wash n set and wig installation but I it takes me longer to do a wash n set so I lose customers.
- have you guys considered working together?
- I’m losing money being that I can only do wash and sets
- Working together you guys can specialize, specializing would help u guys provide all services you cannot obtain on your own so you both can focus on what you do best.
- Not really, how would that help our situation?
- How do we know who should focus on what ?
- Can you explain more
- So I have the comparative advantage in wig installations
- Comparative advantage is the ability to provide a service at the lower opportunity cost than the other. So which ever one of u spend less Time on a wig installation or wash n set has the comparative advantage
- & I have the comparative advantage in wash n sets
- And how do we do the other worked needed to keep our business afloat?
- Now absolute advantage would be whoever can provide the service faster and more efficiently, meaning whoever can do it better and faster would have the absolute advantage
- So I also have the absolute advantage in providing wash and sets
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