What is the maximum number of shirts Taylor can make in a day?

Use the information provided below to complete the questions. Total points = 100.

Your friend Taylor works producing dress shirts and dress pants. Currently Taylor can work a maximum of 8 hours per day. With the equipment Taylor has, and the current level of expertise, Taylor can finish either 10 shirts or 20 pairs of pants in an hour. This is true when Taylor is performing at full capacity. Meaning doing the best possible work.

1. What is the maximum number of shirts Taylor can make in a day? (10 points)

2. What is the maximum number of pants Taylor can make in a day? (10 points)

3. What is the opportunity cost of making one pair pants (in terms of the amount of shirts Taylor won’t be able to make)? As an example, when you give up $20 dollars in exchange for 40 pencils, you can say that the “cost” per pencil was $0.50, because $20/40 = $0.50. (15 points)

4. What is the opportunity cost of making one shirt (in terms of the amount of pants Taylor won’t be able to make)? (15 points)

5. Taylor’s friend Alexis, can make 10 shirts or 30 pairs of pants in an hour. Who has a lower opportunity cost of making shirts? In other words, who has a comparative advantage in the production of shirts? Explain your rationale (15 points)

6. Imagine now, that Taylor and Alexis are the only 2 shirts and pants producers in their small town, how would you suggest that they spend their time at work to achieve the highest production of shirts and pants for the town? Explain your rationale. (15 points)

7. Imagine now, that Taylor completes a training that doubles Taylor’s capacity to make both shirts and pants per hour. a) What is the maximum number of shirts Taylor can make in a day? b) What is the maximum number of pants Taylor can make in a day? c) What does that tell you about the value of training (human capital) in production? (15 points)
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USING GRAPHS TO INTERPRET INFORMATION
8. Which graph best illustrates all the possible maximum combinations of shirts and pants Taylor can produce in one day? (5 points)
INSTRUCTIONS FOR SUBMITTING YOUR RESPONSES
Type your response on a Microsoft Word file (.doc file), save it, and upload it through D2L. You MUST submit your response to the appropriate assignment folder by the due date. Work turned in using any format other than MS Word (.doc), may not be graded. In addition, work turned in late, via email, in my mailbox or in class WILL receive NO CREDIT. Consideration MAY be given on late assignments for valid documented emergencies.

To submit your response, you will need access to internet, and a computer with proper software, if you don’t, you can use any of the “open lab” computers at any BC Learning Resource Center or in public libraries. No consideration will be given for not having access to the hardware, software or any other resource required to access the D2L platform.

Your response will be evaluated in accordance to the following Intellectual Standards; Clarity, Accuracy, Precision, Relevance and Logic. For more information review the assignment rubric.
THINGS TO CONSIDER
You should only attempt to complete this assignment once you have finished reading, and reviewing (including taking notes) all of the textbook content for chapter 1 and 2. The background handout provided is useful but it should not be the only your only reading source. An assignment of this nature may require 1 hour of reading, 30 minutes to figure out the right answers and another 10 minutes to compose, edit and submit your MS Word file.

You should also be familiar with the Intellectual Standards, which are explained in the “Start Here” Unit, and also reviewed in part below.

The following Intellectual Standards; Clarity, Accuracy, Precision, Relevance and Logic, will be used to grade your response. In other words, your grade will depend on how clear, accurate, precise, relevant and logical your response is. As you write and draft your response, use the questions below to solicit or achieve each standard.

CLARITY: Could you elaborate further on that point? Could you express that point in another way? Could you give me an example?
ACCURACY: Is that really true? How could we check that? How could we find out if that is true?
PRECISION: Could you give more details? Could you be more specific?
RELEVANCE: How is that connected to the question? How does that bear on the issue?
LOGIC: Does this really make sense? Does that follow from what you said? How does that follow?

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