Question

Consider the following scenario to answer the following questions: Kukla makes tables, with an opportunity cost of 3 rugs per every 4 tables. Zola makes rugs, with an opportunity cost of 2 tables per every 3 rugs

Ollie proposes that Kukla give Zola 2 tables in exchange for 2 rugs. What are Kukla's and Zolas reactions?

a. Kukla likes the proposal, but Zola does not.

b. Zola likes the proposal, but Kukla does not.

c. Kukla and Zola both like the proposal.

d. Neither Kukla nor Zola likes the proposal.

e. Ollies proposal is not feasible.

Answer

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