## (Solved) ECO-330 - Chapter 2 - Question 1: Rosie is the manager of a

ECO-330 ? Chapter 2 ? Question 1:

1. Rosie is the manager of a profitable submarine sandwich shop. Her business was growing so she hired Maggie, a young college student, to help her during the day. Rosie knows from past experiences that her workers can either spend their time baking sub buns or making sub sandwiches. Rosie?s production matrix for Maggie is the following:
 Maggie?s Options ? Sub Buns per Hour Maggie?s Options ?Sandwiches per Hour Bake 40 Sub Buns Make 0 Sub Sandwiches Bake 30 Sub Buns Make 20 Sub Sandwiches Bake 20 Sub Buns Make 30 Sub Sandwiches Bake 0 Sub Buns Make 40 Sub Sandwiches

1. Utilizing Excel or similar graphing software, graph the results of the above inform with Baking Sub Buns on the X-axis and Making Sub Sandwiches on the Y-axis.
2. Connect the points in (a) with a curved line to demonstrate the Production Possibility Curve, or alternatively referred to as the Production Possibilities Frontier (PPF).
3. Using an illustration only (no numbers), demonstrate what might happen to the PPF if Rosie invested in new convention ovens for baking the bread that increased her bread output per hour by 10%. Her output for making sandwiches is not changing.
4. Now, assuming (c) above is not operational, using only an illustration again (no numbers), what would happen if Rosie trained her workers to be more productive through ?teaming,? and the overall result is 15% more productivity in general, affecting both sandwich making and bread baking?

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This question was answered on: Oct 15, 2019

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