Question

Use the information from your production possibilities schedule to create your production possibilities curve by filling in the following graph

Assignment: Determining Production Possibilities 


You are getting ready to open The Shoe Hut, but you need to need to determine whether you have the absolute or comparative advantage in the production of specific items. This will help you determine which product is the best for specialization. 


Your production possibilities are as follows: 

• You have the resources to produce up to 15 running shoe inserts. 

• You have the resources to produce up to 10 hiking boot inserts. 

• For every 2 hiking boot inserts produced, you give up the production of 3 running shoe inserts 


Your production possibilities schedule will help you determine: 

• your opportunity costs. 

• your best options for production. 


Scroll to the next page to complete your production possibilities schedule.


1. Using the information that you learned about your ability to produce running shoe inserts and hiking boot inserts, complete your production possibilities schedule.

image.png


2. Use the information from your production possibilities schedule to create your production possibilities curve by filling in the following graph. Use text boxes to insert text, and use lines and circles from the shapes function to illustrate your production possibilities. Be sure to mark points A through F on the graph. 

image.png


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Answer #1

i)

Since 2 hiking boot inserts should be given up to produce additional 3 running shoe inserts. PPF schedule can be depicted as under:

Combination Running shoes inserts Hiking boot inserts
A 15 0
B 0 10
C 12 2
D 9 4
E 6 6
F 3 8

b)

Quantity of running shoe insets Produced PPF Bio, o 0 2 4 6 16 2 4 6 8 10 12 14 Quantity of hiking boot inserts produced

> I love you

Jianna Tue, May 25, 2021 1:42 PM

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Answer #2

   HOPE THIS HELPS!                                                                                                                           Based on the information you used to create your schedule and curve, which product would you recommend the Shoe Hut focus on, and why? Provide details that support your answer. (5 points)


It would be preferable for me to produce running shoe inserts because the production of running shoe inserts has a lower opportunity cost than the production of hiking boot inserts would have.  The production of running shoe inserts requires fewer resources, which could also mean greater profits for me and I don’t have to waste money on buying a huge amount of resources. 


Based on the data within your schedule and curve, are you using your resources efficiently? Support your answer using the data presented. (5 points)


I am using my resources efficiently, instead of using more than or all the hiking boots I am producing 2 of them each time the opportunity cost I have to give up is 3.  I am actually producing more when I use fewer resources and as a result of that, i also gain greater profits.  instead on the other hand if I was using more resources I would produce a fewer amount and receive fewer profits.


source: my answer
answered by: stephygotthatjesus

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Jianna Tue, May 25, 2021 1:42 PM

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Coryn Pike Sun, Jan 23, 2022 11:05 AM

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