Question

Using the information the you learned about your ability to produce running show inserts and hiking shoe inserts, complete your production possibilities schedule.
A R=15, H=0
B R=12, H=2
C R=9, H=4
D R=6, H=6
E R=3, H=8
F R=0, H=10

Answer 1

Answer:

Combinations        Running shoe inserts         Hiking boot inserts

         A                                 15                                       0

         B                                 12                                       2

         C                                  9                                       4

         D                                  6                                       6

         E                                   3                                       8

         F                                   0                                      10

Explanation:

The question is incomplete.

The complete question is:

"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.

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

Solution

Use the variable R and H to name the number of running shoe inserts and hiking boot inserts.

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

Then, if you use all the resources to produce 15 running shoe inserts and none boot inser, your possibility is R = 15, H = 0.

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

Then, if you use all the resources to produce 10 hiking boot inserts, you will not produce any running shoe insert.

This possibiity is: R = 0, H = 10.

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

Then you can build a table, starting with R = 15, and H = 0, showing a sequence decreasing R by 3 and increasing H by 2:

Row       R        H

 1          15        0

 2         12        2

 3          9         4

 4          6         6

 5          3         8

 6          0        10

That is the complete set of production possibilities. There are a total of 6 differente combinations, and you can call each one with a different letter from A to F, which is what the table of combinations shows.