Question

A Korean BBQ restaurant has three workers for washing jobs: Dane, Jose, and Pola. Each works eight hours a day and can produce two washing services: washing rice bowls and washing grill racks. In an hour, Dane can either wash 100 rice bowls or wash 30 grill racks; Jose can either wash 120 rice bowls or wash 30 grill racks; and Pola can either wash 120 rice bowls or wash 40 grill racks. ` a. Compute the marginal rate of transforming washed rice bowls to washed grilled racks, MRTBR in short, for Dane, Jose, and Pola. b. The following two extreme points are located on the production possibilities frontier (PPF). • Point A: this point represents the numbers of washed rice bowls and the number of grill racks when all three workers spend all their time washing rice bowls only. • Point B: this point represents the number of washed rice bowls and the number of grill racks when all three spend all their time washing grill racks only. The PPF also includes the points on which some of the workers are spending all their time in doing one job, while some other workers are spending all their time doing the other job. Starting from point A, who should be the first person to be relocated to the other job? Explain the reason why.

Answer 1