Katie and Hugh are producing pies and jars of pickles. Katie can produce either 200 jars of pickles or 100 pies per month. Hugh can produce either 800 jars of pickles or 200 pies per month. Currently, each divide their time equally between production of the two goods per month -- Katie produces 100 jars of pickles and 50 pies while Hugh produces 400 jars of pickles and 100 pies. In order for Katie and Hugh to jointly gain from specialization, which of the following changes should take place?
A)Hugh should produce more pies and fewer jars of pickles.
B)Katie should produce more pies and fewer jars of pickles.
C)Katie and Hugh should both produce more pies and fewer jars of pickles.
D)Katie and Hugh should both produce more jars of pickles and fewer pies.
E)Katie should produce more jars of pickles and fewer pies.

Question

Quizplus · Accepted Answer

The Answer of Katie and Hugh are producing pies and jars of pickles. Katie can produce either 200 jars of pickles or 100 pies per month. Hugh can produce either 800 jars of pickles or 200 pies per month. Currently, each divide their time equally between production of the two goods per month -- Katie produces 100 jars of pickles and 50 pies while Hugh produces 400 jars of pickles and 100 pies. In order for Katie and Hugh to jointly gain from specialization, which of the following changes should take place?
A)Hugh should produce more pies and fewer jars of pickles.
B)Katie should produce more pies and fewer jars of pickles.
C)Katie and Hugh should both produce more pies and fewer jars of pickles.
D)Katie and Hugh should both produce more jars of pickles and fewer pies.
E)Katie should produce more jars of pickles and fewer pies.

Katie and Hugh Are Producing Pies and Jars of Pickles