-Agnes Can Produce Either 1 Unit of X or 1

$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { U.S. production } \\\text { possibilities }\end{array} & \begin{array} { l } \text { France's production } \\\text { possibilities }\end{array} \\\hline \text { Steel } & 100 & 25 \\\hline \text { Concrete } & 200 & 100 \\\hline\end{array}$$
-Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. There can be gains from exchange

A) if Agnes specializes in the production of X and Brenda specializes in the production of Y.
B) only if Brenda becomes faster at producing X or Y.
C) if Agnes specializes in the production of Y and Brenda specializes in the production of X.
D) only if Agnes becomes faster at producing X.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free