Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

Ron Swanson takes 1 week to make a rocking chair or a bird house. Andy Dwyer would take 3 weeks to make a chair or 2 weeks to make a bird house. If each person is planning on spending 3 weeks on rocking chairs and 2 weeks on bird houses if they do not work together, is there an acceptable trade that is still achievable in 5 weeks? Assume that both people are okay with having partially-completed projects (e.g. half a chair) because they can complete the project next summer.

(A) There are no gains from trade available since Ron is better at producing both goods.

B) Ron should produce only chairs and Andy should produce only bird houses. At the end of the summer, gives up 3 chairs to get 2.5 bird houses.

(C) Ron should produce only bird houses and Andy should produce only chairs. At the end of the summer, Ron gives up 2 bird houses to get 1 chair.

(D) Ron should produce some of each, making 4 chairs and 2 bird houses. Andy should produce only bird houses. At the end of the summer, Ron gives up 1 chair to get 1.5 bird houses.

(E) None of the above.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91914924

Have any Question?


Related Questions in Business Economics

Suppose that the government gives a 10 per unit subsidy to

Suppose that the government gives a $10 per unit subsidy to sellers of Humbugs. The pre-subsidy price of Humbugs was $50. There are no additional social benefits to encouraging the consumption of Humbugs. If, at the orig ...

Williamnbspis interested in knowingnbspwhether or not

William is interested in knowing  whether or not athletics from his team have lower satisfaction with their team on a survey than the known population average survey score of 19  and the known population survey standard ...

What are the typical types of risk faced by a firm explain

What are the typical types of risk faced by a firm? Explain each type of risk in details.

The widths of 86 randomly selected doors were found to have

The widths of 86 randomly selected doors were found to have a variance of 1.68. Construct the 90% confidence interval for the population variance of the widths of all doors in this factory. Round your answers to two deci ...

What is the current balance of trade for the united states

What is the current balance of trade for the United States? Has this balance been increasing or decreasing? Based on the current economic conditions, how do you think this balance will move in the near future, and why?

A jewerly store paid a unit price of 250 less 40 16 8 for

A jewerly store paid a unit price of $250 less 40%, 16% , 8% for a shipment of designer watches. the store's overhead expenses are 65% of cost and the required profit is 55% of coat. a. What is the regular selling price ...

Under the trade model with external economies of scale is

Under the trade model with external economies of scale, is it possible for a country to be worse off with trade than it would have been without trade? Justify your answer.

Determine whether the given value is a statistic or a

Determine whether the given value is a statistic or a parameter. Thirty percent of all dog owners poop scoop after their dog

In an experian automotive 2008 study the average number of

In an Experian Automotive 2008 study, the average number of vehicles per household in the United States was found to be 2.28 vehicles. The results also showed that almost 35% of households have three or more vehicles. A. ...

How do bribery and corruption influence the economy

How do bribery and corruption influence the economy negatively? Answer and explain three major impacts.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As