Suppose that iggi and kurt begin trading ice cream and, Ask an Expert

Economics

Iggi and Kurt each own an ice cream shop that sells homemade ice cream on a homemade waffle cone. The table below shows the number of ice cream scoops and waffle cones that Iggi and Kurt produce in an hour. Both Iggi and Kurt work 8 hours per day and spend their time producing ice cream, waffle cones, or a combination of the two.

Ice Cream
(Scoops per hour) Waffle Cones
(Cones per hour)
Iggi 24 8
Kurt 16 4

Suppose that Iggi and Kurt begin trading ice cream and waffle cones with each other. What price of waffle cones (in terms of ice cream scoops) would benefit both Iggi and Kurt and make both individuals willing to trade?

A. P = 1 scoop of ice cream per waffle cone

B. P = 3.25 scoops of ice cream per waffle cone

C. P = 4.50 scoops of ice cream per waffle cone

D. P = 2.75 scoops of ice cream per waffle cone

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9282428

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