I don’t know how to handle this Business question and need guidance.
It is 3 different questions,
First question: Consider a society consisting only of Helen, who allocates her time between sewing dresses and baking bread. Each hour she devotes to sewing dresses yields 4 dresses and each hour she devotes to baking bread yields 8 loaves of bread.
If Helen works a total of 8 hours per day, graph her production possibilities curve.
Using your graph, which of the points listed below are attainable and/or efficient?
28 dresses per day, 16 loaves per day.
16 dresses per day, 32 loaves per day.
dresses per day, 24 loaves per day.
second question: he supplies curves for the only two firms in a competitive industry are given by, respectively:
P = 2Q1 and P = 2 Q2,
where Q1 is the output of firm 1 and Q2 is the output of firm 2.
What is the market supply curve for this industry?
(Hint: Graph the two curves side by side; then add their respective quantities at a sample of different prices.) (Chapter 6, problem 2)
Third question: Consider the following game: Harry has four quarters, he can offer Sally from one to four of them. If she accepts his offer, she keeps the quarter’s Harry offered her and Harry keeps the others. If Sally declines Harry’s offer, they both get nothing ($0). They play the game only once, and each cares only about the amount of money he or she ends up with.
Who are the players?
What are each player’s strategies?
Construct a decision tree for this game.
Given their goal, what is the optimal choice for each player? (Chapter 9, Problem2, Page 268).