Kayla and Josel produce food and luxury goods. Kayla has 10 hours; it takes her 1 hour to produce 1 unit of food and 2 hours to produce 1 unit of luxury goods. Josel has 20 hours; for the first 8 hours of producing food, it takes him 2 hours to produce 1 unit of food. Then, beyond 8 hours, Josel is less productive and it takes him 4 hours to produce 1 additional unit of food. It takes Josel 2 hours to produce 1 unit of luxury goods no matter how many hours are allocated into the production of luxury goods. MAKE SURE YOU REFER TO THE ABOVE STATEMENT FOR QUESTIONS 36-41 Save Answer Q36 Suppose that Kayla and Josel trade only with each other, and agree to the following terms of trade: 2 units of food in exchange for 3 units of luxury goods. What is the relative price of 1 unit of food in terms of units of luxury goods? O A. 2/3. O B. 3/2. O C. 2/3 if within the first 8 hours of producing food for Josel, and 3/2 otherwise. O D. 3/2 if within the first 8 hours of producing food for Josel, and 2/3 otherwise. O E. None of the above. Save Answer Q37 Suppose that Kayla and Josel trade only with each other, and agree to the following terms of trade: 2 units of food in exchange for 3 units of luxury goods. What is Kayla's value-maximizing point of production? O A. 4 units of food and 6 units of luxury goods.
Kayla and Josel produce food and luxury goods. Kayla has 10 hours; it takes her 1 hour to produce 1 unit of food and 2 hours to produce 1 unit of luxury goods. Josel has 20 hours; for the first 8 hours of producing food, it takes him 2 hours to produce 1 unit of food. Then, beyond 8 hours, Josel is less productive and it takes him 4 hours to produce 1 additional unit of food. It takes Josel 2 hours to produce 1 unit of luxury goods no matter how many hours are allocated into the production of luxury goods. MAKE SURE YOU REFER TO THE ABOVE STATEMENT FOR QUESTIONS 36-41 Save Answer Q36 Suppose that Kayla and Josel trade only with each other, and agree to the following terms of trade: 2 units of food in exchange for 3 units of luxury goods. What is the relative price of 1 unit of food in terms of units of luxury goods? O A. 2/3. O B. 3/2. O C. 2/3 if within the first 8 hours of producing food for Josel, and 3/2 otherwise. O D. 3/2 if within the first 8 hours of producing food for Josel, and 2/3 otherwise. O E. None of the above. Save Answer Q37 Suppose that Kayla and Josel trade only with each other, and agree to the following terms of trade: 2 units of food in exchange for 3 units of luxury goods. What is Kayla's value-maximizing point of production? O A. 4 units of food and 6 units of luxury goods.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 42P: A small company that shovels sidewalks and driveways has 100 homes signed up for its services this...
Related questions
Question
Transcribed Image Text:Q35 Statement for Q36-Q41
Kayla and Josel produce food and luxury goods. Kayla has 10 hours; it takes her 1 hour to
produce 1 unit of food and 2 hours to produce 1 unit of luxury goods. Josel has 20 hours; for the
first 8 hours of producing food, it takes him 2 hours to produce 1 unit of food. Then, beyond 8
hours, Josel is less productive and it takes him 4 hours to produce 1 additional unit of food. It
takes Josel 2 hours to produce 1 unit of luxury goods no matter how many hours are allocated
into the production of luxury goods.
MAKE SURE YOU REFER TO THE ABOVE STATEMENT FOR QUESTIONS 36-41
Save Answer
Q36
Suppose that Kayla and Josel trade only with each other, and agree to the following terms of
trade: 2 units of food in exchange for 3 units of luxury goods. What is the relative price of 1 unit
of food in terms of units of luxury goods?
O A. 2/3.
O B. 3/2.
O C. 2/3 if within the first 8 hours of producing food for Josel, and 3/2 otherwise.
O D. 3/2 if within the first 8 hours of producing food for Josel, and 2/3 otherwise.
O E. None of the above.
Save Answer
Q37
Suppose that Kayla and Josel trade only with each other, and agree to the following terms of
trade: 2 units of food in exchange for 3 units of luxury goods. What is Kayla's value-maximizing
point of production?
O A. 4 units of food and 6 units of luxury goods.
B. 10 units of food and 0 units of luxury goods.
C. O units of food and 15 units of luxury goods.
O D. 6 units of food and 4 units of luxury goods.
O E. None of the above.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax