Tom and Jerry have two tasks to do all day: make dishes and build fences.If Tom spends all day making dishes,he will have make 16 dishes.If he instead devotes his day to building fences,Tom will build 4 fences.If Jerry spends his day making dishes,he will make 14 dishes; if he spends the day building fences,he will build 7 fences.At the end of the day,if Jerry was efficient with his resources,he could have produced:
A) 12 dishes and 0 fences.
B) 10 dishes and 2 fences.
C) 8 dishes and 2 fences.
D) 6 dishes and 2 fences.

Question

Quizplus · Accepted Answer

Jerry's production possibilities are based on his ability to make 14 dishes or 7 fences in a day. The opportunity cost of 1 fence is 2 dishes (14 dishes/7 fences). Therefore, if Jerry makes 2 fences, he sacrifices 4 dishes, leaving him with 10 dishes (14 - 4). Thus, he can produce 10 dishes and 2 fences efficiently.

Tom and Jerry Have Two Tasks to Do All Day