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Scenario: Mark can make three tables or one chair in a day, while John can make four tables or one ...

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Scenario: Mark can make three tables or one chair in a day, while John can make four tables or one ...

Scenario: Mark can make three tables or one chair in a day, while John can make four tables or one chair in a day.

Refer to the scenario above. Which of the following is TRUE in this case?

▸ Mark should specialize in making chairs, because he has a lower opportunity cost of producing them.

▸ Mark should specialize in making tables, because he has a greater opportunity cost of producing them.

▸ Mark should specialize in making tables, because he has a lower opportunity cost of producing them.

▸ Mark should specialize in making chairs, because he has a greater opportunity cost of producing them.

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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