What is Amy and Penny’s opportunity cost of producing one meal (in terms of baskets given up)?
PART 1. Gains from trade [36 points] Suppose Amy and Penny are housemates and there are two chores that need to be completed: cooking meals and laundry. Assume the hours needed to cook a meal or finish a basket of laundry are different for Amy and Penny and are described in the table below. 1 MEAL 1 BASKETAMY 1/4 2PENNY 1 4 1.1. What is […]