A firm operates two plants, Plant A and B. Both plants can produce good x and good y. Each plant can produce up to 250 days in a year. For every day plant A can produce either 10 units of good x or 5 units of y. For every day plant B can produce either 5 units of good x or 4 units of y. Case A: the firm produces only x in plant A and only y in plant B. Quantity of x produced in Plant A = 2500 Quantity of y produced in Plant A = 0 Quantity of x produced in Plant B = 0 Quantity of y produced in Plant B = 1000 Quantity of x produced by the firm = 2500 Quantity of y produced by the firm = 1000 Question MRT, defined as the amount of y for each unit of x, of plant A? MRT, defined as the amount of y for each unit of x, of plant B?
A firm operates two plants, Plant A and B. Both plants can produce good x and good y. Each plant can produce up to 250 days in a year. For every day plant A can produce either 10 units of good x or 5 units of y. For every day plant B can produce either 5 units of good x or 4 units of y. Case A: the firm produces only x in plant A and only y in plant B. Quantity of x produced in Plant A = 2500 Quantity of y produced in Plant A = 0 Quantity of x produced in Plant B = 0 Quantity of y produced in Plant B = 1000 Quantity of x produced by the firm = 2500 Quantity of y produced by the firm = 1000 Question MRT, defined as the amount of y for each unit of x, of plant A? MRT, defined as the amount of y for each unit of x, of plant B?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
A firm operates two plants, Plant A and B. Both plants can produce good x and good y. Each plant can produce up to 250 days in a year. For every day plant A can produce either 10 units of good x or 5 units of y. For every day plant B can produce either 5 units of good x or 4 units of y.
Case A: the firm produces only x in plant A and only y in plant B.
Quantity of x produced in Plant A = 2500
Quantity of y produced in Plant A = 0
Quantity of x produced in Plant B = 0
Quantity of y produced in Plant B = 1000
Quantity of x produced by the firm = 2500
Quantity of y produced by the firm = 1000
Question
- MRT, defined as the amount of y for each unit of x, of plant A?
- MRT, defined as the amount of y for each unit of x, of plant B?
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