Jason produces more jeans than Jasmine.Why would Jason and Jasmine want Jasmine to produce the jeans although they both know that he can produce more than she can at a faster rate?

Question

Quizplus · Accepted Answer

Opportunity cost is the cost of giving up something to produce something else. In this case, if Jasmine has a lower opportunity cost of producing jeans (i.e. she gives up less to produce them), it makes sense for her to produce them even if Jason can produce more at a faster rate. This allows both of them to specialize in the tasks they are best at, resulting in greater overall productivity.

Jason Produces More Jeans Than Jasmine