Answer to Question #230406 in Microeconomics for Varshith

Question

2.Assume Susan and Andre are siblings. They make bracelets to give neighborhood friends. Before they are allowed to go outside and play, they must make the 12 beds in their house. They have 1 hour before their friends will gather in the park, and the siblings want to have as many bracelets as possible when they meet their friends.

Susan can make 2 beds in 10 minutes. Andre can make 4 beds in 15 minutes.

Susan makes 3 bracelets in 30 minutes. Andre makes 2 bracelets in 30 minutes.

1. Identify Susan’s opportunity cost for each bracelet she makes. Identify her opportunity cost of making a bed.
2. Identify Andre’s opportunity costs for each activity.
3. Andre wants to share the bed-making equally and suggests they both make 6 beds. Suzy wants Andre to make all the beds while she makes bracelets. Who is the better economist? Why?
4. Given they have to make twelve beds, what is the maximum number of bracelets the siblings can make before they go to the park? Show your work or explain.

Answer 1

Susan

$$1 bed = 5min$$

$$1 bracelet=10 min$$

Andre

$$1 bed =3.5 min$$

$$1bracelet=15 min$$

Need Susan to make bracelets and Andre to work with beds.