Question
2. Suppose one factory produces jeans and jackets. The following scenarios describe various straight-line production possibilities boundaries for this factory. Each scenario describes the number
2. Suppose one factory produces jeans and jackets. The following scenarios describe various straight-line production possibilities boundaries for this factory. Each scenario describes the number of jeans that could be produced in one day if all of the factory's resources were devoted to producing jeans, and the number of jackets that could be produced in one day if all of the factory's resources were devoted to producing jackets. For each scenario, calculate the opportunity cost to the factory owner of producing one more jacket. (2 marks each - there should be five separate calculations.)
- a)1000 pairs of jeans; 250 jackets
- b)500 pairs of jeans; 500 jackets
- c)1200 pairs of jeans; 400 jackets
- d)942 pairs of jeans; 657 jackets
- e)450 pairs of jeans; 600 jackets
Number of workers producing coffee
Monthly production of coffee (hundreds of pounds)
Number of workers producing doughnuts
Monthly production of doughnuts (hundreds)
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