Figure 3-15
Perry's Production Possibilities Frontier
Jordan's Production Possibilities Frontier
-Refer to Figure 3-15.Perry should specialize in the production of
A)novels.
B)poems.
C)both goods.
D)neither good.

Question

Figure 3-15
Perry's Production Possibilities Frontier
Jordan's Production Possibilities Frontier  
-Refer to Figure 3-15.Perry should specialize in the production of
A)novels. 
B)poems. 
C)both goods. 
D)neither good.

Quizplus · Accepted Answer

Perry has a comparative advantage in producing novels, as they can produce 8 novels or 4 poems in a day, while Jordan can produce only 4 novels or 2 poems. Therefore, Perry should specialize in producing novels, which will lead to a higher overall production of goods for both countries.

Figure 3-15 Perry's Production Possibilities Frontier