Angela and Ed Are Married

Multiple Choice

Angela and Ed are married. Angela can do $40 worth of household chores per hour, and Ed can do $15 worth of household chores per hour. In the labor market, Ed can earn $30/hour and Angela can earn $40/hour. The theory of comparative advantage suggests that:

A) Ed should specialize in household production and Angela should specialize in market work.
B) Angela should specialize in household production and Ed should specialize in market work.
C) Angela should specialize in both household production and market work.
D) Ed should specialize in both household production and market work.