b. Assuming that you and your friend specialize, what
allocation of tasks maximizes total output for your one
day of joint effort?
c. Suppose you both decide to work for two days according
to the allocation in part (b). What is the total amount of
output? What would it have been had you chosen the
reverse allocation of tasks?
18. Consider an economy that produces only food and clothing. Its
production possibilities boundary is shown below.
a. If the economy is at point a, how many tonnes of clothing
and how many tonnes of food are being produced? At
point b? At point c?
b. What do we know about the use of resources when the
economy is at point a? At point b? At point c?
c. If the economy is at point b, what is the opportunity cost
of producing one more tonne of food? What is the
opportunity cost of producing one more tonne of
clothing?