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Read the following scenarios scenario 1. 1 factory can produce 1000 widgets with 200 hours of labour and 20 pounds of raw material another factory can produce 1000 widget with 100 hours of labour in 20 pounds of raw material .
scenario 2: A dress maker can sew 800 garments with 160 bolts of clothes and 3000 hours of labour . another dress maker can sew 800 garments for 200 bolts of clothes and 2000 hours of identical labour cloth cost rupees 80 A bolt and labour cost rs 50 an hour .
for each scenario comment if
is it possible for both methods to be technically efficient why or why not
b. is it possible that both of these production processes are economically efficient
i
i?
scenario 2: A dress maker can sew 800 garments with 160 bolts of clothes and 3000 hours of labour . another dress maker can sew 800 garments for 200 bolts of clothes and 2000 hours of identical labour cloth cost rupees 80 A bolt and labour cost rs 50 an hour .
for each scenario comment if
is it possible for both methods to be technically efficient why or why not
b. is it possible that both of these production processes are economically efficient
i
i?
Most Upvoted Answer
Read the following scenarios scenario 1. 1 factory can produce 1000 wi...
Technical Efficiency Analysis
In both scenarios, the concept of technical efficiency refers to producing the maximum output with given inputs.
- Scenario 1:
- Factory A: 1000 widgets → 200 hours of labor + 20 pounds of raw material.
- Factory B: 1000 widgets → 100 hours of labor + 20 pounds of raw material.
- Comment: Factory B is more technically efficient as it uses fewer labor hours for the same output. Thus, both factories cannot be technically efficient simultaneously since one is superior in labor usage.
- Scenario 2:
- Dressmaker A: 800 garments → 160 bolts + 3000 hours of labor.
- Dressmaker B: 800 garments → 200 bolts + 2000 hours of labor.
- Comment: Dressmaker A is more technically efficient as they use fewer bolts and less time to produce the same output. Therefore, only one can be technically efficient.
Economic Efficiency Analysis
Economic efficiency takes into account the cost of inputs in relation to the output produced.
- Scenario 1:
- Factory A: Cost = (200 hours * 50) + (20 pounds * 80) = 10000 + 1600 = 11600.
- Factory B: Cost = (100 hours * 50) + (20 pounds * 80) = 5000 + 1600 = 6600.
- Comment: Factory B is economically efficient as it has a lower cost of production for the same output. Thus, both cannot be economically efficient at the same time.
- Scenario 2:
- Dressmaker A: Cost = (160 bolts * 80) + (3000 hours * 50) = 12800 + 150000 = 162800.
- Dressmaker B: Cost = (200 bolts * 80) + (2000 hours * 50) = 16000 + 100000 = 116000.
- Comment: Dressmaker B is more economically efficient due to lower costs. Therefore, both processes cannot be economically efficient simultaneously.
In both scenarios, the concept of technical efficiency refers to producing the maximum output with given inputs.
- Scenario 1:
- Factory A: 1000 widgets → 200 hours of labor + 20 pounds of raw material.
- Factory B: 1000 widgets → 100 hours of labor + 20 pounds of raw material.
- Comment: Factory B is more technically efficient as it uses fewer labor hours for the same output. Thus, both factories cannot be technically efficient simultaneously since one is superior in labor usage.
- Scenario 2:
- Dressmaker A: 800 garments → 160 bolts + 3000 hours of labor.
- Dressmaker B: 800 garments → 200 bolts + 2000 hours of labor.
- Comment: Dressmaker A is more technically efficient as they use fewer bolts and less time to produce the same output. Therefore, only one can be technically efficient.
Economic Efficiency Analysis
Economic efficiency takes into account the cost of inputs in relation to the output produced.
- Scenario 1:
- Factory A: Cost = (200 hours * 50) + (20 pounds * 80) = 10000 + 1600 = 11600.
- Factory B: Cost = (100 hours * 50) + (20 pounds * 80) = 5000 + 1600 = 6600.
- Comment: Factory B is economically efficient as it has a lower cost of production for the same output. Thus, both cannot be economically efficient at the same time.
- Scenario 2:
- Dressmaker A: Cost = (160 bolts * 80) + (3000 hours * 50) = 12800 + 150000 = 162800.
- Dressmaker B: Cost = (200 bolts * 80) + (2000 hours * 50) = 16000 + 100000 = 116000.
- Comment: Dressmaker B is more economically efficient due to lower costs. Therefore, both processes cannot be economically efficient simultaneously.
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Read the following scenarios scenario 1. 1 factory can produce 1000 widgets with 200 hours of labour and 20 pounds of raw material another factory can produce 1000 widget with 100 hours of labour in 20 pounds of raw material .scenario 2: A dress maker can sew 800 garments with 160 bolts of clothes and 3000 hours of labour . another dress maker can sew 800 garments for 200 bolts of clothes and 2000 hours of identical labour cloth cost rupees 80 A bolt and labour cost rs 50 an hour .for each scenario comment if is it possible for both methods to be technically efficient why or why notb. is it possible that both of these production processes are economically efficient ii?
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Read the following scenarios scenario 1. 1 factory can produce 1000 widgets with 200 hours of labour and 20 pounds of raw material another factory can produce 1000 widget with 100 hours of labour in 20 pounds of raw material .scenario 2: A dress maker can sew 800 garments with 160 bolts of clothes and 3000 hours of labour . another dress maker can sew 800 garments for 200 bolts of clothes and 2000 hours of identical labour cloth cost rupees 80 A bolt and labour cost rs 50 an hour .for each scenario comment if is it possible for both methods to be technically efficient why or why notb. is it possible that both of these production processes are economically efficient ii? for Humanities/Arts 2024 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about Read the following scenarios scenario 1. 1 factory can produce 1000 widgets with 200 hours of labour and 20 pounds of raw material another factory can produce 1000 widget with 100 hours of labour in 20 pounds of raw material .scenario 2: A dress maker can sew 800 garments with 160 bolts of clothes and 3000 hours of labour . another dress maker can sew 800 garments for 200 bolts of clothes and 2000 hours of identical labour cloth cost rupees 80 A bolt and labour cost rs 50 an hour .for each scenario comment if is it possible for both methods to be technically efficient why or why notb. is it possible that both of these production processes are economically efficient ii? covers all topics & solutions for Humanities/Arts 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following scenarios scenario 1. 1 factory can produce 1000 widgets with 200 hours of labour and 20 pounds of raw material another factory can produce 1000 widget with 100 hours of labour in 20 pounds of raw material .scenario 2: A dress maker can sew 800 garments with 160 bolts of clothes and 3000 hours of labour . another dress maker can sew 800 garments for 200 bolts of clothes and 2000 hours of identical labour cloth cost rupees 80 A bolt and labour cost rs 50 an hour .for each scenario comment if is it possible for both methods to be technically efficient why or why notb. is it possible that both of these production processes are economically efficient ii?.
Read the following scenarios scenario 1. 1 factory can produce 1000 widgets with 200 hours of labour and 20 pounds of raw material another factory can produce 1000 widget with 100 hours of labour in 20 pounds of raw material .scenario 2: A dress maker can sew 800 garments with 160 bolts of clothes and 3000 hours of labour . another dress maker can sew 800 garments for 200 bolts of clothes and 2000 hours of identical labour cloth cost rupees 80 A bolt and labour cost rs 50 an hour .for each scenario comment if is it possible for both methods to be technically efficient why or why notb. is it possible that both of these production processes are economically efficient ii? for Humanities/Arts 2024 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about Read the following scenarios scenario 1. 1 factory can produce 1000 widgets with 200 hours of labour and 20 pounds of raw material another factory can produce 1000 widget with 100 hours of labour in 20 pounds of raw material .scenario 2: A dress maker can sew 800 garments with 160 bolts of clothes and 3000 hours of labour . another dress maker can sew 800 garments for 200 bolts of clothes and 2000 hours of identical labour cloth cost rupees 80 A bolt and labour cost rs 50 an hour .for each scenario comment if is it possible for both methods to be technically efficient why or why notb. is it possible that both of these production processes are economically efficient ii? covers all topics & solutions for Humanities/Arts 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following scenarios scenario 1. 1 factory can produce 1000 widgets with 200 hours of labour and 20 pounds of raw material another factory can produce 1000 widget with 100 hours of labour in 20 pounds of raw material .scenario 2: A dress maker can sew 800 garments with 160 bolts of clothes and 3000 hours of labour . another dress maker can sew 800 garments for 200 bolts of clothes and 2000 hours of identical labour cloth cost rupees 80 A bolt and labour cost rs 50 an hour .for each scenario comment if is it possible for both methods to be technically efficient why or why notb. is it possible that both of these production processes are economically efficient ii?.
Solutions for Read the following scenarios scenario 1. 1 factory can produce 1000 widgets with 200 hours of labour and 20 pounds of raw material another factory can produce 1000 widget with 100 hours of labour in 20 pounds of raw material .scenario 2: A dress maker can sew 800 garments with 160 bolts of clothes and 3000 hours of labour . another dress maker can sew 800 garments for 200 bolts of clothes and 2000 hours of identical labour cloth cost rupees 80 A bolt and labour cost rs 50 an hour .for each scenario comment if is it possible for both methods to be technically efficient why or why notb. is it possible that both of these production processes are economically efficient ii? in English & in Hindi are available as part of our courses for Humanities/Arts.
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