Tova and Ron are the only two people on the planet Melmac. It takes Tova 3 hours to produce a widget and 3 hours to produce a woggle.
It takes Ron 1 hour to produce a widget and 2 hours to produce a woggle.
Based on the information above, Tova and Ron

Question

Quizplus · Accepted Answer

Tova has an absolute advantage in producing both widgets and woggles since it takes her less time to produce each item than it takes Ron. However, even though Tova is more efficient in producing both items, it is still possible for both of them to gain from trade. If Tova specializes in producing woggles, she can produce them in 3 hours and get 1 widget in return from Ron, who can produce it in 1 hour. Similarly, if Ron specializes in producing widgets, he can produce them in 1 hour and get 2 woggles in return from Tova, who can produce them in 3 hours. Both trades result in each person having more of the item they value most, so both Tova and Ron can gain from trade.

Tova and Ron Are the Only Two People on the Planet