Bertie’s Boards has 2 factories in Malibu and Denver that were originally dedicated solely to skateboard production. As it turns out though, each of the factories could be used to produce both skateboards and surfboards. Of course, each factory has a somewhat different mix of machines that it uses to produce these goods, so in the Denver factory, a worker can produce 20 surfboards per day or 30 skateboards per day. In the Malibu factory, a worker can produce 40 surfboards per day or 80 skateboards per day. The Denver factory has 10 workers while the Malibu factory has 20 workers.
a. If Bertie decides to start producing surfboards, which factory should he use first and why?
Explain well.
b. Draw the overall production possibilities frontier for Bertie’s Boards.
c. If Bertie wanted to produce 400 surfboards, how many workers should he assign to surf board production? Explain well.