Tom and Jerry have one day to work, but two tasks to focus on: building chairs and tables. If Tom spends all day building chairs, he will make 16 chairs. If he instead devotes his day to building tables, Tom will make 4 tables. If Jerry spends his day building chairs, he will make 14 chairs; if he spends the day building tables, he will make 7 tables. At the end of the day, if Jerry was efficient with his resources, he will have produced:
A) 12 chairs and 0 tables.
B) 10 chairs and 2 tables.
C) 8 chairs and 2 tables.
D) 6 chairs and 2 tables.

Question

Quizplus · Accepted Answer

Jerry's production possibilities are 14 chairs or 7 tables. To be efficient, he should produce a combination that lies on his production possibility frontier. Producing 10 chairs and 2 tables is efficient as it uses his resources fully.

Tom and Jerry Have One Day to Work, but Two