The Owner of Chips Etc

question 13

Short Answer

The owner of Chips etc. produces two kinds of chips: lime (L) and vinegar (V). He has a limited amount of the three ingredients used to produce these chips available for his next production run: 4800 ounces of salt, 9600 ounces of flour, and 2000 ounces of herbs. A bag of lime chips requires 2 ounces of salt, 6 ounces of flour, and 1 ounce of herbs to produce; while a bag of vinegar chips requires 3 ounces of salt, 8 ounces of flour, and 2 ounces of herbs. Profits for a bag of lime chips are $0.40, and for a bag of vinegar chips $0.50.
-For the production combination of 800 bags of lime and 600 bags of vinegar, which resource is not completely used up and how much is remaining?

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Definitions:

Fair Trade

A trading partnership, based on dialogue, transparency, and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers.

Free Trading Nation

A country that has implemented policies to minimize barriers to trade with other countries, such as tariffs and quotas.

Trade Surplus

A situation where a country's exports exceed its imports, leading to a positive balance of trade.

Tariffs

Taxes imposed by a government on imported goods to protect domestic industries and generate revenue.