Table 3-6
Assume that Hilda and Carlos can switch between producing quilts and producing dresses at a constant rate.

-Refer to Table 3-6.Hilda should specialize in the production of
A) quilts and Carlos should specialize in the production of dresses.
B) dresses and Carlos should specialize in the production of quilts.
C) both goods and Carlos should specialize in the production of neither good.
D) neither good and Carlos should specialize in the production of both goods.

Question

Table 3-6
Assume that Hilda and Carlos can switch between producing quilts and producing dresses at a constant rate.
 
-Refer to Table 3-6.Hilda should specialize in the production of
A) quilts and Carlos should specialize in the production of dresses. 
B) dresses and Carlos should specialize in the production of quilts. 
C) both goods and Carlos should specialize in the production of neither good. 
D) neither good and Carlos should specialize in the production of both goods.

Quizplus · Accepted Answer

Hilda should specialize in quilts if she has a comparative advantage in producing them, while Carlos should specialize in dresses if he has a comparative advantage in producing them.

Table 3-6 Assume That Hilda and Carlos Can Switch Between Producing Quilts