In: Economics

Dude Solutions employs four workers. Judy is capable of knitting 20 scarfs or 5 sweaters. Carlos can knit 8 scarfs or 8 sweaters. Mary can knit 4 scarfs or 16 sweaters. Bob can knit 40 scarfs or 20 sweaters.

- Graph the production possibilities frontier for Dude Solutions. Place scarfs (R) on the vertical axis and sweaters (T) on the horizontal axis.
- What is the opportunity cost of producing the first 20 sweaters? Show calculations.
- What is the opportunity cost of producing the 37th scarf? Show calculations.
- Suppose that Dude Solutions is currently producing 60 scarfs and 16 sweaters. What is the opportunity cost of expanding scarf production by 8 units? Explain.

A

B)judy OP of producing one sweater=20/5=4

Carlos OP of producing one sweater =8/8=1

Mary OP of producing one sweater=4/16=1/4=0.25

Boby OP of producing one sweater=40/20=2

The lower OP person will produce sweater first than the high OP person .

So mary has lowest OP ,so he will produce 16 sweater. So OP of 16 sweater =16*0.5=8

Carlos have next lowest OP ,so he will produce 4 sweater and OP =4*1=4

Producing first year 20 sweater =8+4=12

C)judy OP of producing one scarf=5/20=0.25

Carlos OP of producing one scarf=8/8=1

Mary OP of producing one scarf=16/4=4

Bob OP of producing one scarf=20/40=0.5

First 20 scarf produced by judy at OP =0.25*20=5

Next 17 scarf produced by bob bob at OP=17*0.5=8.5

OP of 37 producing 37 scarf=5+8.5=13.5

D)60 scarf means 20 of judy + 40 of bob. But dude solution can produce at same time 24 sweater (16 of mary and 8 of carlos). It means carlos is currently doing nothing.

So expanding scarf production by 8 units have zero opportunity cost as carlos will produce next 8 units of scarfs .it dude solution is currently under ppf curve.

A production facility employs 20 workers on the day shift, 15
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A quality control consultant is to select 5 of these workers for
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selected as does any other group (drawing 5 slips without
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How many selections result in all 5...

The NYPD employs 20 police officers. Each officer works
for 5 days per week. The crime rate fluctuates with the day of
week, so the number of the police officers required each day
depends on which day of the week it is: Monday, 11; Tuesday, 12;
Wednesday, 14; Thursday, 15; Friday, 14; Saturday, 18; Sunday;8.
The Police Station wants to schedule police officers to maximize
the number of the officers whose days off are
consecutive.
Formulate LP and solve the...

The NYPD employs 20 police officers. Each officer works for 5
days per week. The crime rate fluctuates with the day of week, so
the number of the police officers required each day depends on
which day of the week it is: Monday, 11; Tuesday, 12; Wednesday,
14; Thursday, 15; Friday, 14; Saturday, 18; Sunday;8. The Police
Station wants to schedule police officers to maximize the number of
the officers whose days off are consecutive.
Formulate LP and solve the...

For this grouped data;
Number pieces produced Number of workers
5 - 19 6
20 - 34 17
35 - 49 21
50 - 64 29
65 - 79 23
80 - 94 15
95 - 109 10
a) Find the class boundaries (5p)
b) Find the class marks (5p)
c) Find the class interval (5p)
d) Draw a histogram of the distribution (10p)
e) Estimate and draw to a cumulative "less than" distribution
(10p)
f) Calculate the mean, the...

I’ve given you four solutions, in test tubes 1 through 5, and
told you that one contains lactose, one contains raffinose, one
contains insulin, one contains some extract from a starchy root
vegetable, and one contains distilled water. You don’t know what’s
in each test tube. I perform the following tests on the tubes and
report the following observations.
When Lugols reagent is added to tube 4 the contents quickly
turn black. This happens in no other tubes.
I perform...

Question 5 [20 marks] Foursome Inc. is the monopolist in the
four-toe socks market. The product does not sell very well, but
some people buy it as a present for their in-laws. In particular,
the market demand is given by P = 24 − Q
where P and Q are the market price and quantity of four-toe
socks, respectively. The cost function of producing q units is
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simple...

A company sells ”sports sets” that consist of one bar, two
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average of 10 pounds with a standard deviation of 0.25 pound. The
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are 0.2 pound for the 20-pounders and 0.1 pound for the 5-pounders.
We can assume that all the weights are normally distributed.
a. The company ships each set to customers in two different
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Company is expected to have extraordinary growth of 20% for four years, after which it will face more competition and slip into a constant growth rate of 5%. Its required rate of return is 10%. Divieden is $5. What is the price of company's stocks?

Table 3-PEX2: A Production Function with Capital and LaborCapital 6 346 490 600 692 775 846(trucks) 5 316 448 548 632 705 7754 282 400 490 564 632 6923 245 346 423 490 548 6002 200 282 346 400 448 4901 141 200 245 282 316 34615 16 17 18 19 20Labor (workers)4. If the output price is $5 per package, the rent for the
capital is $50 per truck, and the wage of labor is $100 per worker,
what...

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