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Mary and Jason are a new couple trying to understand their family production plans. Suppose they conduct two types of production: household production (HP) and
Mary and Jason are a new couple trying to understand their family production plans. Suppose they conduct two types of production: household production (HP) and market production (MP). If Mary carries out household production, her production value is equivalent to $20 each hour. If she does market production, she gets paid $15 each hour. Jason's production value is $12 per hour if he does household production. If he does market production, he gets paid $25 per hour. Assume Mary and Jason each work 8 hours on a typical workday. b) Assume Mary and Jason conduct market production, only. Calculate and depict the family production possibility. If they wish to keep some household production, who shall do it, and what will be the new production possibility? Show it in a graph
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