Scenario: There are two workers in a factory that produces two goods, Good X and Good Y. Worker 1 adds a value of $200 per hour in the production of Good X and a value of $100 per hour in the production of Good Y. Worker 2 adds a value of $125 per hour in the production of Good X and a value of $87.50 per hour in the production of Good Y.
-Refer to the scenario above.Which of the following is true in this case?

Question

Quizplus · Accepted Answer

Worker 1 adds more value per hour in the production of Good X than Worker 2, and Worker 2 adds more value per hour in the production of Good Y than Worker 1. Therefore, it makes sense for Worker 1 to specialize in the production of Good X, and Worker 2 to specialize in the production of Good Y. This way, the factory can maximize its production efficiency and output.

Scenario: There Are Two Workers in a Factory That Produces