It takes Barbara three hours to make a pie and four hours to make a shirt. It takes Gary two hours to make a pie and five hours to make a shirt. Barbara should specialise in making pies and Gary should specialise in making shirts. Then they should trade.

Question

Quizplus · Accepted Answer

Barbara should specialize in making shirts because she has a lower opportunity cost for shirts compared to Gary, who should specialize in pies. This way, they can trade to maximize their combined output.

It Takes Barbara Three Hours to Make a Pie and Four