Question
A Korean BBQ restaurant has four workers for washing jobs: Dane, June, Park, and Pola.Each works eight hours a day and can produce two washing
A Korean BBQ restaurant has four workers for washing jobs: Dane, June, Park, and Pola.Each works eight hours a day and can produce two washing services: washing rice bowls and washing grill racks.In an hour, Dane can either wash 100 rice bowls or wash 25 grill racks; June can either wash 130 rice bowls or wash 50 grill racks; Park can either wash 150 rice bowls or wash 15 grill racks; and Pola can either wash 100 rice bowls or wash 20 grill racks.
(1) The following two extreme points are located on the production possibilities frontier (PPF).
Point A: this point represents the numbers of washed rice bowls and lthe number of grill racks when all four workers spend all their time washing rice bowls only.
- Point B: this point represents the number of washed rice bowls and the number of grill racks when all four workers spend all their time washing grill racks only.
The PPF also includes the points on which some of the workers are spending all their time in doing one job, while some other workers are spending all their time doing the other job.Starting from point A, who should be the first person to be relocated to the other job?In your answer, you must first compute each worker's marginal rate of transforming washed rice bowl to washed grill rack (MRTSRG), and show how MRTSRG is used in the selection process.
(2) Graph the production possibilities frontier for washed rice bowls and washed grill racks in this restaurant.In the graph, you must identify the points where transfer of a worker from one job to another starts to take place, by showing the coordinates of the points.You must also take into account the fact that every worker works eight hours a day
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