The accompanying figures depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between making pizzas and making stromboli. If Jim and Pam were to specialize and trade, at what exchange rate would they find some quantity of trade to be mutually beneficial?
A) 3 pizzas for 1 stromboli
B) 1 pizza for 1 stromboli
C) 10 pizzas for 2 stromboli
D) 1 pizza for 1/2 stromboli
E) 1 pizza for 1/4 stromboli

Question

The accompanying figures depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between making pizzas and making stromboli. If Jim and Pam were to specialize and trade, at what exchange rate would they find some quantity of trade to be mutually beneficial? 
A) 3 pizzas for 1 stromboli 
B) 1 pizza for 1 stromboli 
C) 10 pizzas for 2 stromboli 
D) 1 pizza for 1/2 stromboli 
E) 1 pizza for 1/4 stromboli

Quizplus · Accepted Answer

The Answer of The accompanying figures depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between making pizzas and making stromboli. If Jim and Pam were to specialize and trade, at what exchange rate would they find some quantity of trade to be mutually beneficial? 
A) 3 pizzas for 1 stromboli 
B) 1 pizza for 1 stromboli 
C) 10 pizzas for 2 stromboli 
D) 1 pizza for 1/2 stromboli 
E) 1 pizza for 1/4 stromboli

The Accompanying Figures Depict the Production Possibilities Frontiers (PPFs) for Two