Suppose I hire 50 workers in my factory to produce two things: books and pens. I engage 35 workers to produce books, and they make 500 books a week. I engage 15 workers to make pens, and they produce 200 pens a week. a. If I used all my workers to make books, how many books would my factory make in a week? If I used all my workers to make pens, how many pens would my factory make in a week? b. Draw a clearly labelled weekly production possibility curve of my company. c. Suppose a particular type of ink is no longer available in Bangladesh and my factory has to use an inferior quality ink in production of both books and pens. What effect might this have on the factory's production possibility curve? Explain with a diagram.

Suppose I hire 50 workers in my factory to produce two things: books and pens. I engage 35 workers to produce books, and they make 500 books a week. I engage 15 workers to make pens, and they produce 200 pens a week. a. If I used all my workers to make books, how many books would my factory make in a week? If I used all my workers to make pens, how many pens would my factory make in a week? b. Draw a clearly labelled weekly production possibility curve of my company. c. Suppose a particular type of ink is no longer available in Bangladesh and my factory has to use an inferior quality ink in production of both books and pens. What effect might this have on the factory's production possibility curve? Explain with a diagram.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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