1. A dressmaker can sew 800 garments with 160 bolts of fabric and 3,000 hour of...

A dressmaker can sew 800 garments with 160 bolts of fabric and 3,000 hour

of labor. Another

dressmaker can sew 800 garments with 200 bolts of fabric and 2,000 hours of identical labor.

Fabric costs $100 a bolt and labor costs $15 per hour.

a. Is it possible both methods are technic

ally efficient? Why or why not?

b. Is it possible that both methods are economically efficient?

Solutions

Expert Solution

b. The cost of 800 dresses to first dressmaker is as follow ; =160*100+3000*15 =16000+45000 =$61000 The cost of 800 dresses to first dressmaker is as follows; =200*100+2000*15 =20000+30000 =$50,000 So,the cost of production of 800 dresses by second dressmaker is cheaper, so 2nd method is economically efficient while first is not

Rahul Sunny answered 1 year ago

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