Suppose that Sheldon and Leonard can either run errands or wash dishes.Their maximum output per hour is listed in the following table.Given the same quantity of resources,at what terms of trade (relative price ratio)could they specialize and trade so that both consume outside their own production possibilities frontiers (PPFs)?

A) 1 errand run per 75 dishes washed
B) 1 errand run per 30 dishes washed
C) 1 errand run per 12 dishes washed
D) 1 errand run per 10 dishes washed
E) 1 errand run per 6 dishes washed

Question

Suppose that Sheldon and Leonard can either run errands or wash dishes.Their maximum output per hour is listed in the following table.Given the same quantity of resources,at what terms of trade (relative price ratio) could they specialize and trade so that both consume outside their own production possibilities frontiers (PPFs) ?

A) 1 errand run per 75 dishes washed 
B) 1 errand run per 30 dishes washed 
C) 1 errand run per 12 dishes washed 
D) 1 errand run per 10 dishes washed 
E) 1 errand run per 6 dishes washed

Quizplus · Accepted Answer

The Answer of Suppose that Sheldon and Leonard can either run errands or wash dishes.Their maximum output per hour is listed in the following table.Given the same quantity of resources,at what terms of trade (relative price ratio)could they specialize and trade so that both consume outside their own production possibilities frontiers (PPFs)?

A) 1 errand run per 75 dishes washed 
B) 1 errand run per 30 dishes washed 
C) 1 errand run per 12 dishes washed 
D) 1 errand run per 10 dishes washed 
E) 1 errand run per 6 dishes washed

Suppose That Sheldon and Leonard Can Either Run Errands or Wash