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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
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 eals. Their production possibilities per hour are in the table below. If Laura and Bob are single and they each ork to produce their own meals and ingredients, and both need to eat 3 (and only 3) meals per day, what is he dollar value of ingredients they can collectively produce in one day? Bob and Laura's Production Possibilities Meals per hour | $ of Ingredients per hour 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), how many dollars worth of ingredients can they jointly purchase? Meals per hour | $ of Ingredients per hour 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? Meals per hour | $ of Ingredients per hour
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