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In: Economics

Producer J and Producer K use land to produce lemons and strawberries. Each producer has available...

Producer J and Producer K use land to produce lemons and strawberries. Each producer has available 30 square meters of land. The following table shows the possibilities of production for each producer (working independently):

Square meters of land needed to produce one kg of strawberries

Square meters of land needed to produce one kg of lemons

Producer J

3

5

Producer K

5

3

There is no alternative use for the land other than to use it to produce lemons and strawberries.

Complete the following paragraphs by choosing the correct answer from each drop-down menu. Partial credit is awarded too:

To make producers J and K benefit from trade, we can recommend two things. First, we can be recommended that producer                            [ Select ]                       ["J", "K"]         specializes in the production of lemons and Producer                            [ Select ]                       ["J", "K"]         specializes in the production of strawberries.

Secondly, we can recommend the following "price" of exchange: one kg of strawberries exchanged for any number of kg lemons that is greater than                            [ Select ]                       ["0", "3/5", "1", "5/3"]         and smaller than                            [ Select ]                       ["0", "3/5", "1", "5/3"]      

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