A small bakery makes baguettes and muffins. With the resources available (workers, flour, machines) this bakery can produce either 1500 baguettes or 2000 muffins per day. a. What is the opportunity cost of an extra muffin in terms of baguettes? b. Assume that production is currently 1200 muffins and 600 baguettes. If the bakery wanted to expand its muffin production to 1300 muffins per day, how many baguettes would be baked?

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter3: Scarcity, Trade-offs, And Production Possibilities
Section: Chapter Questions
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8. A small bakery makes baguettes and muffins. With the resources available (workers, flour, machines) this bakery can
produce either 1500 baguettes or 2000 muffins per day.
a. What is the opportunity cost of an extra muffin in terms of baguettes?
b. Assume that production is currently 1200 muffins and 600 baguettes. If the bakery wanted
to expand its muffin production to 1300 muffins per day, how many baguettes would be baked?
Transcribed Image Text:8. A small bakery makes baguettes and muffins. With the resources available (workers, flour, machines) this bakery can produce either 1500 baguettes or 2000 muffins per day. a. What is the opportunity cost of an extra muffin in terms of baguettes? b. Assume that production is currently 1200 muffins and 600 baguettes. If the bakery wanted to expand its muffin production to 1300 muffins per day, how many baguettes would be baked?
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