or the annual school bazaar, Emmy can produce and sell either origami frogs (F) or birds (B). For his origami he needs to work with sheets of paper, glue, and paper clips. Below table shows how many units of each input factor is needed to produce one origami. It also shows the total amount of input units available. Emmy’s profits per origami bird and frog are =1 and =2, respectively. 1:Which formula describes the sheets of paper constraint? a F <= 5 b F <= 6-2/3B c B <= 5 d F <=7-1B 2: Which formula describes the glue constraint? a F <=7-1B b F <= 5 c B <= 5 d F <= 6-2/3B 3: Which formula describes the paper clips constraint? a B <= 5 b F <=7-1B c F <= 6-2/3B d F <= 5 4: The iso-profit line has a slope of negative a 0.5 b 2 c 4 d 1 5: The optimum solution consists of how many origami frogs? a 6 b 5 c 4 d 2

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 24RQ: What is a production technology?
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For the annual school bazaar, Emmy can produce and sell either origami frogs (F) or birds (B). For his origami he needs to work with sheets of paper, glue, and paper clips. Below table shows how many units of each input factor is needed to produce one origami. It also shows the total amount of input units available. Emmy’s profits per origami bird and frog are =1 and =2, respectively.

1:Which formula describes the sheets of paper constraint?

a

F <= 5

b

F <= 6-2/3B

c

B <= 5

d

F <=7-1B

2: Which formula describes the glue constraint?

a

F <=7-1B

b

F <= 5

c

B <= 5

d

F <= 6-2/3B

3: Which formula describes the paper clips constraint?

a

B <= 5

b

F <=7-1B

c

F <= 6-2/3B

d

F <= 5

4: The iso-profit line has a slope of negative

a

0.5

b

2

c

4

d

1

5: The optimum solution consists of how many origami frogs?

a

6

b

5

c

4

d

2

6: The optimum solution consists of how many origami birds?

a

6

b

2

c

4

d

5

7: Emmy's total profit associated with the optimum solution is equal to

a

10

b

12

c

11

d

13

8: Which statement is false? In the optimum solution, Emmy uses up

a

All sheets of paper.

b

All glue.

c

16 sheets of paper.

d

All paper clips.

9: By how much could the profit of birds increase before the optimum solution changes?

a

By up to 1.

b

By up to 2.

c

By up to 3.

d

By up to infinity.

10: By how much could the profit of birds decrease before the optimum solution changes?

a

By up to 1.

b

By up to 2.

c

By up to 3.

d

By up to infinity.

 

Sheets of paper
Glue units
Paper clips
Units per Frog Units per Bird Total Units Available
3
2
1
1
0
1
18
7
5
Transcribed Image Text:Sheets of paper Glue units Paper clips Units per Frog Units per Bird Total Units Available 3 2 1 1 0 1 18 7 5
Frogs (F)
10
9
8
7
9
5
4
3
2
+
1
2
3
A
t
5
+
6
T
7
T
8
9
т
T
10
Birds (B)
Transcribed Image Text:Frogs (F) 10 9 8 7 9 5 4 3 2 + 1 2 3 A t 5 + 6 T 7 T 8 9 т T 10 Birds (B)
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