An economy consist of Julian, Jafahre, and Lou. Each works 10 hours a day and can produce

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An economy consist of Julian, Jafahre, and Lou. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour , Julian can either mow one lawn or wash one car; Jafahre can either mow one lawn or wash two cars; and Lou can either mow two lawns or wash one car.

A. Calculate how much each service is produced under the following circumstances, which are labeled A,B,C,D:

1. All three spend their time mowing lawns (A)

2. All three spend their time washing cars.(B)

3. All three spend half their time on each activity(C)

4. Julian spends half his time on each activity, while Jafahre only washes cars and Lou only mows lawns (D)

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Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

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