Smith and Jones comprise a two-person economy.Their hourly rates of production are shown below.

-For any efficient point with at least 10 computers and less than 120 calculators,Smith will __________ and Jones will __________.
A) only produce computers;only produce calculators
B) only produce computers;split his time between computers and calculators
C) split his time between computers and calculators;only produce computers
D) evenly divide his time between the two;evenly divide his time between the two
E) only produce calculators;only produce computers

Question

Smith and Jones comprise a two-person economy.Their hourly rates of production are shown below.
 
-For any efficient point with at least 10 computers and less than 120 calculators,Smith will __________ and Jones will __________.
A) only produce computers;only produce calculators 
B) only produce computers;split his time between computers and calculators 
C) split his time between computers and calculators;only produce computers 
D) evenly divide his time between the two;evenly divide his time between the two 
E) only produce calculators;only produce computers

Quizplus · Accepted Answer

Smith will only produce computers because he has at least 10 computers, which is more than the minimum requirement of 10 computers. Jones will split his time between computers and calculators because he has less than 120 calculators, which is less than the maximum requirement of 120 calculators.

Smith and Jones Comprise a Two-Person Economy