Question

Susan can pick 4 pounds of coffee in an hour or gather 2 pounds of nuts. Tom can pick 2 pounds of coffee in an hour or gather 4 pounds of nuts. Each works 6 hours per day a. What is the maximum number of pounds of coffee the two can pick in a day? b. What is the maximum number of pounds of nuts the two can gather in a day? c. Suppose Susan and Tom were picking the maximum number of pounds of coffee when they decided that they would like to begin gathering 4 pounds of nuts per day. Who would gather the nuts?(Click to select) How many pounds of coffee would they still be able to pick? d. Now suppose Susan and Tom were gathering the maximum number of pounds of nuts when they decided that they would like to begin picking 8 pounds of coffee per day. Who would pick the coffee? (Click to selecty How many pounds of nuts would they still be able to gather? pounds of nuts per day. e. Would it be possible for Susan and Tom in total to gather 26 pounds of nuts and pick 20 pounds of coffee each day? (Click to select If so, how much of each good should each person pick? pounds. pounds pounds of coffee per day. offee uts pounds pounds Susan pounds pounds f. The combination of 30 pounds of coffee and 12 pounds of nuts per day is (Click to select) g. The combination of 24 pounds of coffee and 24 pounds of nuts per day is (Click to select) h. On the diagram below, show Susan and Tom's combined daily PPC

Answer 1

a)

Susan can pick 4 pounds of coffee in one hour, so in 6 hours, she can pick 24 pounds of coffee ( 4 pounds per hour x 6 hours). Tom can pick 2 pounds of coffee in one hour, so in 6 hours he can pick (2 pounds x 6 hours)=12 pounds of coffee. In one hour both can pick 24 + 12 = 36 pounds of coffee.

b) Susan can pick 2 pounds of nuts in one hour, so in 6 hours, she can pick 12 pounds of nuts ( 2 pounds per hour x 6 hours). Tom can pick 4 pounds of nuts in one hour, so in 6 hours he can pick (4 pounds x 6 hours)=24 pounds of nuts. In one hour both can pick 24 + 12 =36 pounds of nuts.

c)

Opportunity cost

                                                   Susan        Tom

Pounds of coffee (per hour)          4                 2

Pounds of nuts ( per hour)             2                 4

1. Susan’s opportunity cost of producing one pound of coffee is (2/4 =1/2) pound of nuts.
2. Susan’s opportunity cost of producing one pound of nut is (4/2 =2) pound of coffee.
3. Tom’s opportunity cost of producing one pound of coffee is (4/2 =2) pound of nuts.
4. Tom’s opportunity cost of producing one pound of nut is (2/4 =1/2) pound of coffee.

Susan has a lower opportunity cost of producing coffee in terms of nuts, so she should produce coffee.

Tom has a lower opportunity cost of gathering nuts in terms of coffee, so he should gather nuts.

Tom should pick nuts. It will take one hour for Tom to pick 4 pounds of nuts. In one hour he will pick 4 pounds of nuts and in the rest of 5 hours he will pick 2 x 5= 10 pounds of coffee, totaling 10 pounds of coffee.

Susan will pick 4 x 6=24 pounds of coffee. Total is 10 +24 = 34 pounds of coffee.

d) Susan will pick coffee. It will take 2 hours for Susan to pick 8 pounds of coffee.

In two hours she will pick 2 x4=8pounds of coffee, and in the rest of fur hours she will pick 2 x 4=8 pounds of nuts. Tom will pick 4 x 6=24 pounds of nuts. Total is 32 pounds of nuts.

e) Tom will pick 24 pounds of nuts ( 4 pounds of nuts x 6 hours) and Susan will pick 2 pounds in one hour.

The rest of the day, i.e. for 5 hours, Susan will pick 20 pounds of coffee ( 4 pounds of coffee x 5 hours).