In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice should specialize in the production of
A) bookshelves.
B) shoes.
C) either shoes or bookshelves.
D) neither shoes nor bookshelves.

Question

Quizplus · Accepted Answer

Alice should specialize in the production of bookshelves because she has a lower opportunity cost for producing bookshelves compared to shoes. She gives up fewer shoes per bookshelf than Roger does.

In One Week Alice Can Produce 5 Pairs of Shoes