Tom takes 20 minutes to burn a CD and 5 minutes to make a sandwich. Jerry takes 15 minutes to burn a CD and 3 minutes to make a sandwich. If Tom and Jerry trade
A) Jerry will benefit and Tom will not.
B) Tom will benefit and Jerry will not.
C) both will benefit.
D) none of them will benefit.

Question

Quizplus · Accepted Answer

Both Tom and Jerry will benefit if they trade because they have different opportunity costs for burning CDs and making sandwiches. Tom is relatively slower at burning CDs, while Jerry is relatively slower at making sandwiches. By specializing in the task they are faster at and trading, they can both save time and increase their overall productivity.

Tom Takes 20 Minutes to Burn a CD and 5