Answer to Question #146831 in Microeconomics for Farah alamawi

Question

Assume that Alexi works 20 hours per week in the business. Assuming Alexi is in business on his own, graph the possible combinations of street tacos and Cuban sandwiches that he could produce in a week. Do the same for Tony.

Answer 1

Assuming Alexi can make 80 street tacos per hour but only 20 Cuban sandwiches. Tony is a bit faster and can make 100 street tacos or 30 Cuban sandwiches in an hour. Alexi and Tony can sell all the street tacos and Cuban sandwiches that they are able to produce.

The production possibility of Alexi and Tony for Street Tacos and Cuban Sandwiches is given in the table below:

A can produce 1600 units of Street Tacos in 20 hour and 0 units of Cuban sandwiches. On the other hand Alexi can produce 400 units of Cuban sandwiches and 0 units of ST in 20 hour. Alexy can produce any combination of two goods between 0 to 1600 of Street Tacos and 0 to 400 units of Cuban Sandwiches in 20 hours. This is depicted in the figure below by the blue curve A.