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10. The following table summarizes the production possibilities of a milk company with the available resources: Milk (bottles/day) Cheese (pounds/day) 10 40 15 35 20

10. The following table summarizes the production possibilities of a milk company with the available resources:

Milk (bottles/day) Cheese (pounds/day)
10 40
15 35
20 25
25 10

i. Calculate the opportunity cost if the company wants to increase milk production from 15 to 20 bottles.

C.O. = ____________.

ii. Calculate the opportunity cost if the company wishes to increase milk production from 20 to 25 bottles.

C.O. = ____________.

iii. A study indicates consumers are interested in increased consumption of milk. According to company data, the willingness to pay for milk is shown in the following table:

Milk (bottles/day) Willingness to pay (pounds/day)
10 5
15 4
20 3
25

iv. According to the above data, what is the efficient production of milk for the company?

11. With the savings from your job, you opened a small laundromat. The following table summarizes the data of the work carried out by the workers hired in the first month:

Worker Washing Ironing
Mary 20 pieces 25 pieces
Joseph 10 pieces 15 pieces

According to the opportunity cost, to what activity should Mary dedicate herself?

= ______________.

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