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 focus on producing computers due to his higher productivity in that area, while Jones should split his time to meet the production requirements of both goods efficiently.

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