QUESTION 8 Figure 3-10 Alice and Betty\'s Production Possibilities in one 8-hour

Question

QUESTION 8 Figure 3-10 Alice and Betty's Production Possibilities in one 8-hour day. Frontier Betty's Production Possibilities Frontier 00+-A (110.100) 50 100 150 200 250 300 350 400 i 50 100 150 200 230 300 350 400 Refer to Figure 3-10. If point A represents Alice's production and point B represents Betty's production, Oa Alice produces 200 pitchers of lemonade and 100 pizzas while Betty produces 180 pitchers of lemonade and 180 pizzas Ob Only Alice can benefit from specialization and trade. OG Alice produces 100 pitchers of lemonade and 200 pizzas while Betty produces 180 pitchers of lemonade and 180 pizzas. Od Alice produces 180 pitchers of lemonade and 180 pizzas while Betty produces 200 pitchers of lemonade and 100 pizzas.

Explanation / Answer

Answer
Option A
The point A shows Alice's production of 100 Pizzas and 200 pitchers of lemonade
Point B represents Betty's production of 180 of both goods

the trade benefits both because the PPF is different for both

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