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Chuck and Margaret each have 10 hours per day to bake apple pies and pick cherries. For each hour of labour, the number of pies or kilos of cherries picked are shown in the table below:    Apple pies CherriesChuck 3 5Margaret 4 1 Which of the following statements is true?Group of answer choicesFor Chuck and Margaret be willing to trade, the maximum price of a pie in terms of kilos of cherries is 2/5 (or 0.4) kilos of cherries.For Chuck and Margaret be willing to trade, the maximum price of a kilo of cherries in terms of pies is 4 pies.For Chuck and Margaret be willing to trade, the maximum price of a pie in terms of kilos of cherries is 5 kilos of cherries.For Chuck and Margaret be willing to trade, the maximum price of a kilo of cherries in terms of pies is 3 pies.For Chuck and Margaret be willing to trade, the minimum price of a kilo of cherries in terms of pies is 2.5 pies.

Question

Chuck and Margaret each have 10 hours per day to bake apple pies and pick cherries. For each hour of labour, the number of pies or kilos of cherries picked are shown in the table below:    Apple pies CherriesChuck 3 5Margaret 4 1 Which of the following statements is true?Group of answer choicesFor Chuck and Margaret be willing to trade, the maximum price of a pie in terms of kilos of cherries is 2/5 (or 0.4) kilos of cherries.For Chuck and Margaret be willing to trade, the maximum price of a kilo of cherries in terms of pies is 4 pies.For Chuck and Margaret be willing to trade, the maximum price of a pie in terms of kilos of cherries is 5 kilos of cherries.For Chuck and Margaret be willing to trade, the maximum price of a kilo of cherries in terms of pies is 3 pies.For Chuck and Margaret be willing to trade, the minimum price of a kilo of cherries in terms of pies is 2.5 pies.

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Solution

The correct statement is: For Chuck and Margaret to be willing to trade, the maximum price of a kilo of cherries in terms of pies is 4 pies.

Here's why:

Chuck can produce 3 pies or 5 kilos of cherries in an hour. This means that for him, the cost of 1 pie is 5/3 kilos of cherries, and the cost of 1 kilo of cherries is 3/5 pies.

Margaret can produce 4 pies or 1 kilo of cherries in an hour. This means that for her, the cost of 1 pie is 1/4 kilos of cherries, and the cost of 1 kilo of cherries is 4 pies.

For a trade to be beneficial for both, the price of a kilo of cherries in terms of pies should be between 3/5 (Chuck's cost) and 4 (Margaret's cost). Therefore, the maximum price of a kilo of cherries in terms of pies that would make both willing to trade is 4 pies.

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