specializes in labor market work. If they still need to each eat 3 meals per day (for a total of 6 meals), what are Bob and Laura's joint gains from marriage in terms of purchased ingredients?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Both Bob and Laura can work 6 hours per day in either market work for a wage or in home production. In particular, they can work at home to make
meals or work in the labor market to purchase ingredients for those meals. Their production possibilities per hour are in the table below.
Imagine Laura and Bob get married to enjoy the economic gains from specialization and division of labor in marriage, and the person who has the
comparative advantage in cooking meals specializes in cooking meals while the person with the comparative advantage in labor market works
specializes in labor market work. If they still need to each eat 3 meals per day (for a total of 6 meals), what are Bob and Laura's joint gains from
marriage in terms of purchased ingredients?
Bob
Laura
Numeric Response
Meals per hour $ of Ingredients
per hour
1
1
20
15
Transcribed Image Text:Both Bob and Laura can work 6 hours per day in either market work for a wage or in home production. In particular, they can work at home to make meals or work in the labor market to purchase ingredients for those meals. Their production possibilities per hour are in the table below. Imagine Laura and Bob get married to enjoy the economic gains from specialization and division of labor in marriage, and the person who has the comparative advantage in cooking meals specializes in cooking meals while the person with the comparative advantage in labor market works specializes in labor market work. If they still need to each eat 3 meals per day (for a total of 6 meals), what are Bob and Laura's joint gains from marriage in terms of purchased ingredients? Bob Laura Numeric Response Meals per hour $ of Ingredients per hour 1 1 20 15
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