Y5

Denny and Amy are married. Each is endowed with 10 hours per week. Denny can produce 60 units of market goods or 30 units of home goods with each hour of time. Amy can produce 40 units of market goods or 50 units of home goods with each hour of time.

a. Draw their combined opportunity frontier if they engage in specialization and exchange.

b. Indicate a point along the frontier (if one exists) where:

(1) Denny and Amy both spend all their time in the market

(2) Denny and Amy both spend all their time at home

(3) Denny spends all his time in the market and Amy spends all her time at home

(4) Amy spends all her time in the market and Denny spends all his time at home

(5) Denny spends all his time at home and Amy spends some time in the market and some at home

(6) Denny spends all his time in the market and Amy spends some time in the market and some at home

(7) Amy spends all her time at home and Denny spends some time at home and some in the market

(8) Amy spends all her time in the market, and Denny spends some time at home and some in the market

Which points don't exist?