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4. (Chapter 2, Question 5) a. Their maximum possible coffee output is 36 pounds per day (12 from Tom and 24 from Susan). b. Their

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4. (Chapter 2, Question 5) a. Their maximum possible coffee output is 36 pounds per day (12 from Tom and 24 from Susan). b. Their maximum possible output of nuts is also 36 pounds per day (12 from Susan and 24 from Tom) c. Tom should be sent to gather nuts, since his opportunity cost (half a pound of coffee per pound of nuts) is lower than Susan's (2 pounds of coffee per pound of nuts). Since it would take Tom only one hour to gather four pounds of nuts, he can still pick 10 pounds of coffee in his 5 working hours that remain. Added to Susan's 24 pounds, they will have a total of 34 pounds of coffee per day. d. Susan should be sent to pick coffee, since her opportunity cost (half a pound of nuts per pound of coffee) is lower than Tom's (2 pounds of nuts per pound of coffee). It will take Susan 2 hours to pick 8 pounds of coffee, which means that she can still gather 8 pounds of nuts. So they will have a total of 32 pounds per day of nuts. e. To gather 26 pounds of nuts per day, Tom should work full time gathering nuts (24 pounds per day) and Susan should spend one hour per day gathering nuts (2 pounds per day). Susan would still have 5 hours available to devote to picking coffee, so she can pick 20 pounds of coffee per day. f. The point 30 pounds of coffee per day and 12 pounds of nuts per day can be produced by having Susan work full time picking coffee (24 pounds of coffee per day) while Tom spends 3 hours picking coffee (6 pounds of coffee) and 3 hours gathering nuts (12 pounds of nuts). g. The point 24 pounds of coffee per day and 24 pounds of nuts per day can be achieved if each works full time at his or her activity of comparative advantage. Both points are attainable and efficient

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