Question

Suppose that Sheldon and Leonard can either run errands or wash dishes. The time it takes each of them to accomplish one of these jobs is given in the following table. Given the same quantity of resources (one hour of time) and assuming no breaks for either one, how will they specialize and what terms of trade can they both agree on?
Run an errand Wash a Dish

Sheldon 60 minutes 1 minute

Leonard 20 minutes 2 minutes

Answer 1

Answer: Sheldon focuses or specialize on running errands and Leonard in washing dishes;

they trade at 1 errand run per 20 dishes washed

Explanation:

Sheldon focuses or specialize on running errands and Leonard in washing dishes; thus this the individual specialization

they trade at 1 errand run per 20 dishes washed this is the terms of trade they both can agree on.