Use the Following Scenario to Answer the Questions That Follow

question 120

Multiple Choice

Use the following scenario to answer the questions that follow.
An economy has two workers, Smith and Ricardo. Every day they work, Smith can produce 4 computers or 16 smartphones, and Ricardo can produce 6 computers or 12 smartphones.
-If Smith and Ricardo spend one-half of their time producing computers and the other half of their time producing smartphones,what will be the total output per day?

• A) 4 computers and 12 smartphones
• B) 5 computers and 14 smartphones
• C) 6 computers and 16 smartphones
• D) 8 computers and 22 smartphones
• E) 10 computers and 28 smartphones

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Definitions:

Perfect Competitor

A hypothetical market structure where many firms sell an identical product, entry and exit are free, all information is known to all parties, and no single buyer or seller can influence the market price.

Corn Farmer

An agriculturalist who specializes in the cultivation and production of corn crops for various uses, including food, feed, and biofuel.

Grocery Store

A retail establishment that sells food and other household goods.

Used Car Dealer

A business that specializes in selling pre-owned vehicles, offering a wide range of models at various price points.