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You are getting ready to open The Shoe Hut, but you need to need to determine whether you have the absolute or comparative advantage in the production of specific items. This will help you determine which product is the best for specialization.
Your production possibilities are as follows:
• You have the resources to produce up to 15 running shoe inserts.
• You have the resources to produce up to 10 hiking boot inserts.
• For every 2 hiking boot inserts produced, you give up the production of 3 running shoe inserts.
Your production possibilities schedule will help you determine:
• your opportunity costs.
• your best options for production.
1. Using the information that you learned about your ability to produce running shoe inserts and hiking boot inserts, complete your production possibilities schedule.
Use table
Combinations Running Shoe Inserts Hiking Boots inserts
A
B
C
D
E
F
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