In panel c of Figure 10.5, the joint production possibility frontier is concave to the origin. When the two individual production possibility frontiers are combined, however, the resulting PPF could have been drawn so that it was convex to the origin.

How do we know which of these two ways of drawing the PPF to use?

4.2. Pat and Chris can spend their non-leisure time working either in the marketplace or at home (preparing dinner, taking care of children, doing repairs). In the marketplace, Pat earns a higher wage, wp = $20, than Chris, wc = $10. Discuss how living together is likely to affect how much each of them works in the marketplace. In particular, discuss what effect marriage would have on their individual and combined budget constraints and their labor-leisure choices (see Chapter 5). In your discussion, take into account the theory of comparative advantage.