Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. $$\begin{array} { | l | r | r | }
\hline & \text { Calculatars Per Haur } & \text { Camputers Per Haur } \
\hline \text { Brith } & 100 & 10 \
\hline \text { Jones } & 120 & 6 \
\hline
\end{array}$$
If Smith and Jones are dividing their time efficiently and producing fewer than 10 computers and more than 120 calculators per hour, then Smith will ________ and Jones will ________.

Question

Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. $$\begin{array} { | l | r | r | } 
\hline & \text { Calculatars Per Haur } & \text { Camputers Per Haur } \
\hline \text { Brith } & 100 & 10 \
\hline \text { Jones } & 120 & 6 \
\hline
\end{array}$$  
If Smith and Jones are dividing their time efficiently and producing fewer than 10 computers and more than 120 calculators per hour, then Smith will ________ and Jones will ________.

Quizplus · Accepted Answer

Smith will split his time between computers and calculators, while Jones will produce only calculators. This is because Smith has a comparative advantage in producing computers, while Jones has a comparative advantage in producing calculators.

Smith and Jones Comprise a Two-Person Economy If Smith and Jones Are Dividing Their Time Efficiently and of Production