An economy has two workers, Jen and Rich. Every day they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the most of each type that can be produced per day if each worker fully specializes according to his/her comparative advantage?

Question

Quizplus · Accepted Answer

Rich has a comparative advantage in TVs, and Jen has a comparative advantage in radios. If Rich specializes in producing TVs, then he can produce 4 per day, and if Jen specializes in producing radios, then she can produce 10 per day.

An Economy Has Two Workers, Jen and Rich