Trade
Kate 2 4
Locksmiths Across street
Kate has a comparative
Hours needed advantage in
for each unit 1. locks
2. keys
lock key 3. Both
4. none
Leo 3 2
Kate 2 4
Locksmiths Across street
Leo should
Hours needed
1. specialize in lock
for each unit production
2. specialize in key
lock key production
3. should produce
Leo 3 2 both
4. should not trade
Kate 2 4 with Kate
Locksmiths Across street
Possible terms of trade
Hours needed is one lock for __ keys
for each unit 1. 1/4
2. 1
lock key 3. 2
4. 3
Leo 3 2
Kate 2 4
Locksmiths Across street
Each pair of key/lock can
Hours needed be sold for $100. If BOTH
for each unit can work 20 hours a day,
how much can the two
lock key earn at most if they work
cooperatively
1. $600
Leo 3 2 2. $800
3. $900
Kate 2 4 4. $1,000