Barbara and Shelbi both perform hairstyling and manicures. The schedule below illustrates their production possibilities. Determine if the total output of the two could be improved; i.e. who should specialize in hairstyling, and who should specialize in manicures?
Answer
a. Barbara should only style hair. Shelbi should only perform manicures.
b. Barbara should perform only manicures; Shelbi should only style hair.
c. They should not specialize; neither has comparative advantage in either service.
d. Barbara should produce both services, since she can perform more per day than Shelbi.
e. Shelbi should perform both services, since she can perform more per day than Barbara.