Albena and Elena are two close friends who run a very popular restaurant where portions of either gozlemes ( a bread with spinach and feta cheese) or kebab are served. As shown on the table, Albena can make 20 portions of gozleme per hour but only 10 portions of kebab per hour. assume that Elena can make 8 portions of gozleme or 5 portions of kebab per hour. Suppose now that after a quarrel on this date, Albena and Elena decide not to coordinate their production and agree to divide the total orders of 80 portions of gozleme and 80 portions of kebab into two. Assume that a portion of both gozleme and kebab is sold at $3. To maximize her revenue, how should Elena allocate her time to the production of gozleme and kebab?For the preceding part, assume now that a portion of gozleme is sold at $3, whereas a portion of kebab is sold at $5. To maximize her revenue, how should now Elena allocate her time to the production of gozleme and kebab?

Opportunity cost can be defined as the potential benefits that is given up by an individual or a…

Answered: Albena and Elena are two close friends…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Albena and Elena are two close friends who run a very popular restaurant where portions of either gozlemes ( a bread with spinach and feta cheese) or kebab are served. As shown on the table, Albena can make 20 portions of gozleme per hour but only 10 portions of kebab per hour. assume that Elena can make 8 portions of gozleme or 5 portions of kebab per hour. Suppose now that after a quarrel on this date, Albena and Elena decide not to coordinate their production and agree to divide the total orders of 80 portions of gozleme and 80 portions of kebab into two. Assume that a portion of both gozleme and kebab is sold at $3. To maximize her revenue, how should Elena allocate her time to the production of gozleme and kebab?
For the preceding part, assume now that a portion of gozleme is sold at $3, whereas a portion of kebab is sold at $5. To maximize her revenue, how should now Elena allocate her time to the production of gozleme and kebab?

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