Cuban sandwiches.1.) Using the line drawing tool, graph the possible combinations of street tacos and Cuban sandwiches that he could producein a week, Label the line 'PPFaleyi4802) Using the point drawing tool, indicate how many of each good he actually produces in a week given the amount of timespent on each. Label the point 'A'.400Carefully follow the instructions above and only draw the required objects.320Suppose that Alexi spent all 20 hours of his time on street tacos and Tony spent 17 hours on Cuban sandwiches and 3 hourson street tacos.ㅎ 240-200Combined they would produce a total of 580 tacos and 510 Cuban sandwiches.160-Suppose that Alexi and Tony can sell all their street tacos for $3.50 each and all their Cuban sandwiches for $3.50 each.80PRESuppose each of them works 20 hours per week and they decide to completely specialize. That is, Alexi will spend all20 hours on production of one good, and Tony will spend all 20 hours on production of the other good.10001200 1600 2000 2400 2000Cuban sandwiches0+400How will they spend their time?Tony will spend 20 hours on the production of street tacos.Alexi will spend 20 hours on the production of Cuban sandwiches.Tony will specialize in street taco production and earn $. Alexi will specialize in Cuban sandwich production and eam STheir maximum joint revenue is S per weekStreet tacos Alexi and Tony own a food truck together that serves only two items, street tacos and Cuban sandwiches. Some customerspurchase both goods together; therefore, they will always produce both goods.480-Alexi and Tony can sell all the street tacos and Cuban sandwiches that they are able to produce, and will split the revenueequally.400Output Per HourStreetCuban320-TacosSandwichesAlexi20100a 240-Tony6030160Alexi's opportunity cost of producing one taco is 5 Cuban sandwiches. (Round your response to two decimal places.)Tony's opportunity cost of producing one taco is 0.5 Cuban sandwiches. (Round your response to two decimal places.)80-PPF1o00800 1200 1600 2000 2400 2800Cuban sandwichesAlexi has a comparative advantage in the production of Cuban sandwiches0-400Tony has a comparative advantage in the production of street tacos.Assume that Alexi works 20 hours per week in the business.Further assume that Alexi devoted half of his time (10 of the 20 hours) to making street tacos and half of his time to makingCuban sandwiches.1.) Using the line drawing tool, graph the possible combinations of street tacos and Cuban sandwiches that he could producein a week. Label the line 'PPFAletime2) Using the point drawing tool, indicate how many of each good he actually produces in a week given the amountStreet tacos

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Answered: Alexi and Tony own a food truck…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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