Production Possibilities

Class : ECO-201-3825-Economic Theory-3825-08/2018
Assignment : Week 1 – Production Possibilities
Category :
Due Date : Mon, Aug 13, 2018 11:55 PM MST
Detail :

Assignment: Production Possibilities

CleanAuto Inc. has four workers: Julie, Ian, Devon, and Thomas. CleanAuto Inc. provides two services: interior vacuuming and exterior wash. Julie can perform each of these tasks in one hour. Ian can do two interior vacuums or one exterior wash in one hour. Thomas can do two exterior washes or one interior vacuum in one hour. Devon only does exterior washes, and he can do an exterior wash in half an hour.

  • Calculate the number of interior vacuums and exterior washes done in each of the following staffing scenarios in an eight-hour workday.
    • Julie, Ian, and Thomas do only interior vacuuming, and Devon does only exterior washes.
    • All four do only exterior washes.
    • Julie, Ian, and Thomas each spend half their workday on each task, and Devon spends his entire day doing exterior washes.
    • Julie spends half of her time on each task, while Ian only does interior vacuums and Thomas and Devon only do exterior washes.
  • Create a graph of the production possibilities frontier (PPF) for this company using the answers from the calculations you completed for the above scenarios. Label each of the scenarios listed above as they appear on the PPF. When creating your graph, you should put vacuum on one axis and exterior wash on the other axis. You should plot one coordinate for the total number of washes and the total number of vacuums in each scenario.
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