Mandy Is a Master Wood-Carver and Jerry Is Her Apprentice

question 23

Multiple Choice

Mandy is a master wood-carver and Jerry is her apprentice.They will each work the same number of hours making toy cars.Each car requires 4 wheels and 1 body.Mandy makes wheels at the rate of 25 per hour and bodies at the rate of 10 per hour.Jerry makes wheels at the rate of 10 per hour and bodies at the rate of 10 per hour.If they wish to maximize output, how many wheels should Jerry make per hour?

• A)3
• B)2
• C)10
• D)6
• E)There is not enough information to determine the answer.

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Definitions:

Output

The amount of goods or services produced by a person, machine, factory, or entire economy in a certain period.

Returns To Scale

A concept in economics that describes how the output of a production process changes as the scale of production inputs changes.

Production Function

A mathematical model that describes the relationship between inputs used in production and the resultant output.

Isoquant

An isoquant is a curve depicting all combinations of inputs which produce the same level of output, used in the study of production theory.