Smith and Jones comprise a two-person economy.Their hourly rates of production are shown below. $\begin{array}{ccc}
\underline{\text { Good }}&\underline{\text { Smith }} & \underline{\text { Jones }} \
\text { Computers } & 10 & 6 \
\text { Calculators } & 100 & 120
\end{array}$
Refer to the table above.If Smith and Jones are dividing their time efficiently and producing more than 10 computers and fewer than 120 calculators per hour,Smith will __________ and Jones will __________.
A)produce only computers;produce only calculators
B)produce only computers;split his time between computers and calculators
C)split his time between computers and calculators;produce only computers
D)produce only calculators;produce only computers

Question

Quizplus · Accepted Answer

Smith should produce only computers because he is more efficient at it, while Jones should split his time because he is more efficient at producing calculators but also needs to contribute to computer production to meet the demand.

Smith and Jones Comprise a Two-Person Economy Refer to the Table Above