PLEASE ALSO EXPLAIN HOW YOU GOT THE ANSWER QUESTION 1 Table 3: Production Inform

Question

PLEASE ALSO EXPLAIN HOW YOU GOT THE ANSWER

QUESTION 1 Table 3: Production Information Tacos Enchiladas Ben 15 Madysen 24 Figure 3 Tacos Ys Segment A egment C SegmentB Segment D Xt X2 Enchiladas GRAPH IS NOT DRAWN TO SCALE BUT IS ILLUSTRATIVE OF TABLE. Use the information in Table 3. When the price of tacos is $2, and the price of enchiladas is also $2, then Ben will supply only tacos, and Madysen will supply only enchiladas Not enough information has been provided to determine what Ben and Madysen will do Madysen and Ben will both supply only tacos and no enchiladas Neither Ben or Madysen will supply tacos, both will supply only enchiladas Madysen will supply only tacoS, and Ben Will supply only enchiladas

Explanation / Answer

The answer will be first option.

Ben will supply only Tacos and Madysen will supply only Echiladas.This is beacuse given the same price($2) for both the products, both the producers can maximise their earning or profits only by increasing the volume of their production and sales.

Although we would also need the figures of Costs to determine the opportunity costs for producing each product for both of them, here with the informaiton from the table we can guess that if Ben is producing more Tacos it may mean thathis FOP is lesser in cost than when he produces Echiladas.Ben has a both cost and profit advantage for Tacos while Maysden had more advantage when he produces Echiladas.

Taking only the figures in the table, the first option is the most probable explanation.

Note that without the cost assumptions, the answer will be ' Not enough information is avaiable to determine what they will do'.

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