# QUESTION 1 Two workers are currently trying to produce both pens and pencils for a company named We R’ Write. Worker A can produce 100 pencils per day or 50 pens. Worker B can produce 100 pencils per

QUESTION 1

Two workers are currently trying to produce both pens and pencils for a company named We R’ Write. Worker A can produce 100 pencils per day or 50 pens. Worker B can produce 100 pencils per day or 20 pens.

• If the workers continue to try and produce both, how many pencils will each worker produce, and how many pens will each worker produce?
• What is the opportunity cost of producing pencils and for producing pens for each worker?
• After specialization, how many pencils will be made in total by both workers?
• After specialization, how many pens will be made in total by both workers?
• What is the difference in the total number of pencils made by both workers after specialization?
• What is the difference in the total number of pens made by both workers after specialization?

THIS IS ONE QUESTION OF 8 FOR A TEST. OTHER QUESTIONS ATTACHED BELOW.

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