Question
John and Jacob each use half of their labor to produce bread and cheese. In a day their production capacity is given in the table
John and Jacob each use half of their labor to produce bread and cheese. In a day their production capacity is given in the table below Table 1: Daily Production using of labor each for Bread and Cheese Bread Cheese John 10 4 Jacob 8 6 Total for John and Jacob 18 10 1. How can the total output for John and Jacob maximized through division of labor? Fill up the table below Table 2: Daily Production of Bread and Cheese Bread Cheese John Jacob Total for John and Jacob 2. Once they both specialize, find an exchange mechanism between John and Jacob that would make them better off compared to the outcome shown in the table.
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