Katie and Hugh Are Producing Pies and Jars of Pickles

question 75

Multiple Choice

Katie and Hugh are producing pies and jars of pickles. Katie can produce either 200 jars of pickles or 100 pies per month. Hugh can produce either 800 jars of pickles or 200 pies per month. Currently, each divide their time equally between production of the two goods per month -- Katie produces 100 jars of pickles and 50 pies while Hugh produces 400 jars of pickles and 100 pies. In order for Katie and Hugh to jointly gain from specialization, which of the following changes should take place?

• A)Hugh should produce more pies and fewer jars of pickles.
• B)Katie should produce more pies and fewer jars of pickles.
• C)Katie and Hugh should both produce more pies and fewer jars of pickles.
• D)Katie and Hugh should both produce more jars of pickles and fewer pies.
• E)Katie should produce more jars of pickles and fewer pies.

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Definitions:

Sample Size

The number of observations or participants in a statistical sample.

Slope

In mathematics, it is the measure of the steepness or inclination of a line, representing the ratio of the vertical and horizontal changes between two points on the line.

Residual

The difference between an observed value and the estimated value of the quantity of interest in a statistical model.

Response Value

The observed variable in an experiment or study, often considered as the output or result that is measured.