What would you say to them?

Fergie Alex Colin and Danny are trying to form a band. They each have some basic skills on most i Show more Fergie Alex Colin and Danny are trying to form a band. They each have some basic skills on most instruments so their current plan is for each of them to rotate among vocals guitar bass and drums. After a year of practice and rehearsals the band still sounds awful. Fergie cant keep a steady beat when on bass or drums Colin sounds terrible at everything except the bass nobody except Alex can remember all the chords on guitar and even Dannys own mother thinks his singing sounds like a dying cow. At their current rate they expect it will be several years before they are good enough to land their first paid performance. None of them have enough money saved up to last that long. They all know you are taking economics and ask your advice. What would you say to them? -Have each member specialize in the role that they are best in to take advantage of benefits from specialization. -Abandon the band as continued practice is doomed to suffer diminishing marginal returns. -Change the rotation to be random rather than equal to take advantage of heteroskedasticity. -Invest their remaining savings in new instruments as they are at a point where the marginal product of capital exceeds the marginal product of labor. -Continue with the current plan as economies of scale should eventually kick in. Show less

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