Wynn Debbler can make 90 pairs of trousers or 30 coats, while Peg Michaels can make 100 pairs of trousers or 30 coats. They discuss an arrangement in which Peg gives Wynn trousers in exchange for coats, so that they both benefit. Which of the following arrangements should be acceptable to both Wynn and Peg?

Question

Dean Haynes

Business

11 October, 00:50

Wynn Debbler can make 90 pairs of trousers or 30 coats, while Peg Michaels can make 100 pairs of trousers or 30 coats. They discuss an arrangement in which Peg gives Wynn trousers in exchange for coats, so that they both benefit. Which of the following arrangements should be acceptable to both Wynn and Peg?

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Answers (1)

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Marlene Mosley · Answer 1

In order that both can take benefit from the exchange, the price of coats in terms of trousers must be between 3 and 3.33 extremes not inclusive

Explanation:

Being in the extremes of this range could represent a loss in terms of own capacity to these companies. If the price of coats in terms of trouser goes near of 3,33 then Wynn Debbler would take all the benefits; if the price of coat goes near 3, al then benefits would go to Peg Michaels