Question
Background Information As mentioned in Part 1 of this assignment, Tyson and Ella work at Ruby Red Movie Theater. Tyson can produce 100 bags of
Background Information
As mentioned in Part 1 of this assignment, Tyson and Ella work at Ruby Red Movie Theater. Tyson can produce 100 bags of popcorn or 50 hot dogs in one hour. His coworker, Ella, can produce 100 bags of popcorn or 30 hot dogs in an hour. Answer the following five questions based on this information. Remember to show your work.
Production By
Hourly Production
Tyson
Ella
Bags of Popcorn
Or
100
100
Hot Dogs
50
30
Part 2A
If Tyson and Ella attempted to produce both popcorn and hot dogs, how many bags of popcorn and hot dogs could each produce individually per hour? What would be the total number of bags of popcorn and hot dogs produced per hour by the two workers combined? (Show your work below.)
Each Trying to Produce Both
Production of Popcorn
Production of Hot Dogs
Tyson
Ella
+
+
Total
Part 2B
Calculate the opportunity cost of producing bags of popcorn for each worker. (Show your work.)
Opportunity Cost of Popcorn
Tyson:
Hot Dogs Made
Bags of Popcorn Made
=
For every 1 bag of popcorn Tyson makes, he sacrifices
hot dogs.
Ella:
Hot Dogs Made
Bags of Popcorn Made
=
For every 1 bag of popcorn Ella makes, she sacrifices
hot dogs.
Opportunity Cost of Producing Popcorn
Tyson
Ella
Question
Answer
(Tyson or Ella)
Who has lowest opportunity cost of producing popcorn?
Part 2C
Calculate the opportunity cost of producing hot dogs for each worker. (Show your work.)
Opportunity Cost of Hot Dogs
Tyson:
Hot Dogs Made
Bags of Popcorn Made
=
For every 1 hot dog Tyson makes, he sacrifices
bags of popcorn.
Ella:
Hot Dogs Made
Bags of Popcorn Made
=
For every 1 hot dog Ella makes, she sacrifices
bags of popcorn.
Opportunity Cost of Producing Hot Dogs
Tyson
Ella
Question
Answer
(Ella or Tyson)
Who has lowest opportunity cost of producing hot dogs?
Part 2D
Determine how many bags of popcorn should be produced per hour by each worker. (Show your work).
Who should specialize in producing popcorn?
Who should specialize in producing hot dogs?
Specialization
Production of Bags of Popcorn
Production of Hot Dogs
Tyson
Ella
Total Production With Specialization
Total Without Specialization
Difference
Part 2E
What potential ethical issues could arise from making the decision to have both employees specialize in producing popcorn or hot dogs? Name and explain at least two issues.
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