In: Economics
1.
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?
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