Suppose an American Worker Can Make 50 Pairs of Gloves

question 20

Multiple Choice

Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day.A Bangladeshi worker,on the other hand,can produce 100 pairs of gloves or grow 200 radishes per day.The opportunity cost of one pair of gloves is:

• A)6 radishes for the United States and 2 radishes for Bangladesh.
• B)60 radishes for the United States and 20 radishes for Bangladesh.
• C)1/6 radishes for the United States and ½ radishes for Bangladesh.
• D)6,000 radishes for the United States and 2,000 radishes for Bangladesh.

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Definitions:

Sensitivity Analysis

A technique used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions.

Linear Programming

A mathematical method used for achieving the best outcome (such as maximum profit or lowest cost) in a mathematical model whose requirements are represented by linear relationships.

Corner Points

In linear programming, points at the corner or edge of the feasible region which may contain the optimal solution.

Linear Programming

A mathematical method for determining a way to achieve the best outcome in a given mathematical model for some list of requirements represented as linear relationships.