Question
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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