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    Principles of Macroeconomics Study Set 3
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    Exam 3: Interdependence and the Gains From Trade
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    Julia Can Fix a Meal in 1 Hour, and Her
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Julia Can Fix a Meal in 1 Hour, and Her

Question 179

Question 179

Essay

Julia can fix a meal in 1 hour, and her opportunity cost of 1 hour is $50. Jacque can fix the same kind of meal in 2 hours, and his opportunity cost of 1 hour is $20. Will both Julia and Jacque be better off if she pays him $45 per meal to fix her meals? Explain.

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Since Julia's opportunity cost...

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