Question
I need help with these questions. I was able to answer the first one but I don't know how to do the opportunity cost for
I need help with these questions. I was able to answer the first one but I don't know how to do the opportunity cost for this question. It just makes no sense to me so please help if possible.
Chairs Tables
0 45
20 40
40 30
60 0
Based on the above information answer the following questions.
Show your calculations and Explain your answers.
A.
Does the production schedule reflect the Law of Diminishing Returns? (Hint: Correct answer is yes)
B.
Assume the factory is currently producing 40 chairs and 30 tables and an order comes in for 5 more tables. What is the opportunity cost of producing 5 more tables?
C.
Assume the factory is producing 15 chairs and 35 tables. What problem is the company facing?
D.
A rush order comes in asking for 50 chairs and 35 tables. What problem will the company have in filling the order?
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