Question

An economy consists of three workers: Rajiv, Yakov, and Charles. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Rajiv can either mow 2 lawns or wash 1 car; Yakov can either mow 1 lawn or wash 1 car; and Charles can either mow 1 lawn or wash 2 cars. For each of the scenarios listed in the following table, determine how many lawns will be mowed and how many cars will be washed per day and enter these values into the corresponding row Scenario Lawns Mowed Cars Washed All three spend all their time mowing lawns.
(A) All three spend all their time washing cars
(B) All three spend half their time on each activity.
(C) Rajiv spends half his time on each activity, while Yakov only washes cars and Charles only mows lawns.
(D) Identify the opportunity cost of washing cars for each worker. Worker Opportunity Cost of Washing Cars Yakov Charles

Answer 1

Answer:

(A) All three spend all their time washing cars

In 10 hours Rajiv will wash 10 cars, because he can wash 1 car per hour.

Yakov will also wash 10 cars because he can wash 1 car per hour.

And, Charles will wash 20 cars because he can wash 2 cars per hour.

(B) All three spend half their time on each activity.

In 5 hours, Rajiv will mow 10 lawns, and wash 5 cars.

Yakov will mow 5 lawns and wash 5 cars.

And Chalres will mow 5 lawns and wash 10 cars.

(C) Rajiv spends half his time on each activity, while Yakov only washes cars and Charles only mows lawns.

Rajiv will mow 10 lawns and wash 10 cars.

Yakov will wash 10 cars.

And Charles will mow 10 lawns.

(D) Identify the opportunity cost of washing cars for each worker.

For Rajiv, the opportunity cost of washing 1 car is not mowing 2 lawns.

For Yakov, the opportunity cost is not mowing 1 lawn.

For Charles, the opportunity cost is not mowing half a lawn.