A dressmaker can sew 1,300 garments with 200 bolts of fabric and 2,300 hours of

Question

A dressmaker can sew 1,300 garments with 200 bolts of fabric and 2,300 hours of labor. Another dressmaker can sew 1,300 garments with 100 bolts of fabric and 3,000 hours of identical labor. Fabric costs $110 a bolt and labor costs $30 an hour. a. Is it Possible for both methods to be technically efficient? Why or why not? Yes, because both dressmakers make the same number of garments. Yes, because neither dressmakers using more of both inputs to Produce the same number of garments. No, because the cost of the garments for the first dressmaker is $91,000. The cost of the same number of garments for the second dressmaker is $101,000. Therefore, the first method is technically efficient No, because the first dressmaker uses 2,300 hours of labor while the second dressmaker used 3,000 hours of labor. This means that the first dressmaker has higher productivityand therefore is the only one who is technically efficient.

Explanation / Answer

7

a. Yes, Because neither dressmaker is using more of both inputs to produce same amount of garments

b. No, Because first method has lower cost of production.

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