Suppose that Dwight and Jim can either make salads or grill steaks.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 frontier (PPF)?

A) 1 salad per 1 steak
B) 2 salads per 1 steak
C) 2.5 salads per 1 steak
D) 3 salads per 1 steak
E) 3.5 salads per 1 steak

Question

Suppose that Dwight and Jim can either make salads or grill steaks.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 frontier (PPF) ?

A) 1 salad per 1 steak 
B) 2 salads per 1 steak 
C) 2.5 salads per 1 steak 
D) 3 salads per 1 steak 
E) 3.5 salads per 1 steak

Quizplus · Accepted Answer

The Answer of Suppose that Dwight and Jim can either make salads or grill steaks.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 frontier (PPF)?

A) 1 salad per 1 steak 
B) 2 salads per 1 steak 
C) 2.5 salads per 1 steak 
D) 3 salads per 1 steak 
E) 3.5 salads per 1 steak

Suppose That Dwight and Jim Can Either Make Salads or Grill