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Question
William can create 30 meals in one hour, or wash 90 dishes in the same time. Jeremy can create 25 meals in one hour, or wash 50 dishes in one hour. Using opportunity cost, who should specialize in what task?
a. William is more productive and therefore should make meals and wash dishes.
b. Since creating meals is harder, William should create meals and wash dishes.
c. Since washing dishes is easier, Jeremy should wash dishes and create meals.
d. Jeremy can wash twice as many dishes per meal, so Jeremy should wash dishes.
e. Jeremy gives up fewer dish washings per meal creation, so Jeremy should create meals.
Answer
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Related questions
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Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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Q:
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