Smith and Jones Comprise a Two-Person Economy Suppose Smith and Jones Begin by Producing 100 Calculators Per
Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table.
Suppose Smith and Jones begin by producing 100 calculators per hour; as Smith and Jones choose to efficiently produce fewer computers and more calculators, ________ should devote more time to calculators because his ________.
A) Smith; absolute advantage is larger
B) Jones; absolute advantage is smaller
C) Jones; opportunity costs are lower
D) Smith; opportunity costs are lower
Correct Answer:
Verified
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