Table 3-18
Chris and Tony's Production Opportunities

-Refer to Table 3-18 Chris and Tony both produce tomatoes and pasta sauce.The table shows their possible production per month if both work the same number of 8 hour days.Which of the following prices would result in a mutually advantageous trade between Chris and Tony?
A) 1 lb. of tomatoes for 23 jars of sauce
B) 1 lb. of tomatoes for 27 jars of sauce
C) 1 lb. of tomatoes for 33 jars of sauce
D)Both a and b are correct.

Question

Table 3-18
Chris and Tony's Production Opportunities
 
-Refer to Table 3-18 Chris and Tony both produce tomatoes and pasta sauce.The table shows their possible production per month if both work the same number of 8 hour days.Which of the following prices would result in a mutually advantageous trade between Chris and Tony?
A) 1 lb. of tomatoes for 23 jars of sauce 
B) 1 lb. of tomatoes for 27 jars of sauce 
C) 1 lb. of tomatoes for 33 jars of sauce 
D)Both a and b are correct.

Quizplus · Accepted Answer

Both A and B would result in a mutually advantageous trade because both Chris and Tony would be better off specializing in the production of the good in which they have a comparative advantage.

Table 3-18 Chris and Tony's Production Opportunities