Both people are okay with having partially-completed project

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Reference no: EM131159484

Ron Swanson takes 1 week to make a rocking chair or a bird house. Andy Dwyer would take 3 weeks to make a chair or 2 weeks to make a bird house. If each person is planning on spending 3 weeks on rocking chairs and 2 weeks on bird houses if they do not work together, is there an acceptable trade that is still achievable in 5 weeks? Assume that both people are okay with having partially-completed projects (e.g. half a chair) because they can complete the project next summer.

(A) There are no gains from trade available since Ron is better at producing both goods.

B) Ron should produce only chairs and Andy should produce only bird houses. At the end of the summer, gives up 3 chairs to get 2.5 bird houses.

(C) Ron should produce only bird houses and Andy should produce only chairs. At the end of the summer, Ron gives up 2 bird houses to get 1 chair.

(D) Ron should produce some of each, making 4 chairs and 2 bird houses. Andy should produce only bird houses. At the end of the summer, Ron gives up 1 chair to get 1.5 bird houses.

(E) None of the above.

Reference no: EM131159484

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