If Ana devotes all her time to making fudge, she can make 3 pounds of fudge an hour, and if she devotes all her time to making toffee, she can make 2 pounds of toffee an hour. If Leo devotes all his time to making fudge, he can make 4 pounds of fudge an hour, and if he devotes all his time to making toffee, he can make 5 pounds of toffee an hour. Suppose that Ana and Leo decide to work together as a team. Can they produce 2 pounds of fudge and 4.5 pounds of toffee each hour?
A. No, this point is not attainable.
B. Yes, this point is both attainable and efficient.
C. Yes, this point is attainable, but inefficient.
D. No, this point is not attainable and inefficient.
Answer: C
You might also like to view...
At what quantity is the firm indifferent between the two technologies?
a. 10 b. 2 c. 5 d. 8
According to the law of demand, a higher rate of return (that is, a higher price) will decrease
a. supply. b. demand. c. quantity supplied. d. quantity demanded.
For purposes of calculating the CPI, the apparel category of consumer spending includes the cost of
a. clothing, but not footwear or jewelry. b. clothing and footwear, but not jewelry. c. clothing and jewelry, but not footwear. d. clothing, footwear, and jewelry.
Which one of these is not a characteristic of capitalism?
A. Central planning B. Private property C. The price mechanism D. Competition