Rachel has decided to start her own business Rachels Sweet Treats baking and selling cakes
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Question:
Rachel has decided to start her own business – Rachel’s Sweet Treats – baking and selling cakes and cookies.
Choice | Cakes | Cookies |
A | 0 | 8 |
B | 4 | 3 |
C | 6 | 0 |
Use the table above to answer the following questions:
Draw a production possibilities curve to showcase the options for Rachel. Feel free to use a Word or Excel document to create the graph.
Determine the opportunity costs for a move from B to C. Remember that to make more cakes, you have to give up cookies. How many cookies would you have to give up to make 6 cakes instead of 4 cakes?
Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
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