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Assume that John and Jane each work 24 hours. What happens to total production if instead of each person spending 12 hours producing each good, Jane spends 21 hours producing wine and 3 hours producing bread and John spends 3 hours producing wine and 21 hours producing bread?

A) The total production of bread and wine each rise.
B) The total production of bread rises and the total production of wine falls.
C)The total production of bread falls and the total production of wine rises.
D) The total production of bread and wine each fall.

Respuesta :

TomShelby

Answer:

A) The total production of bread and wine each rise.

Missing Information:

Labor hours needed to produce a unit of the following items considering the person who do it:

Bottle of Wine              Jane 2hs   Jhon 3hs

To make Loaf of Bread Jane 1.5hs Jhon 1hs

Explanation:

As they will move more into the product where they got comparative advandage the total produciton will rise as Jane is better doing Wine than Jhon while Jhon is better doing Bread than Jane.

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