bba 2501 micoreconmics Need Help with a draft for my Microeconmics all instruction is listed Orville Stewart 289220 BBA 2501 Unit I Assignment Worksheet

bba 2501 micoreconmics Need Help with a draft for my Microeconmics all instruction is listed Orville Stewart
289220

BBA 2501

Unit I Assignment Worksheet

You will complete this assignment in two parts.

 Part 1 requires a short written response.
 Part 2 involves completing a worksheet on which you will show your work and provide

your answers to the questions listed below.

Examples of how to complete these questions can be found in the Unit I Introduction and
associated videos.

All components of Parts 1 and 2 of the assignment will be completed using this worksheet, on
which you will show your work and provide your answers to the questions listed. Once you
have completed all components of the assignment, save and upload this worksheet into
Blackboard. Name your file “Unit I Assignment Worksheet–YourName” (replace “YourName”
with your own name). Make sure you include your name and class section at the top of this
worksheet.

Part 1
Tyson and Ella work at the Ruby Red Movie Theater in town. After work, they decide to watch a
movie. After purchasing their tickets, they stop by the concession stand and purchase popcorn,
drinks, and candy. Use the circular flow diagram to describe the purchases that Tyson and Ella
made and the services and goods that were provided to them.

Your response must be at least 75 words, which you can provide in the space below. Once you
have completed Part 1, please complete Parts 2A–2E, which begin on the next page.

Tyson and Ella worked at the Ruby Red Movie Theater. That means Tyson and Ella supply their
work in the factor market, which the theater used to operate. With this labor, the theater
provides salaries to both Tyson and Ella. The wages that they received they used to purchase
tickets, popcorn, and drinks. The theater provided all these items. The theater then received
revenues for the goods and services it offers on the product markets.

Tyson and Ella paid for the goods and services that the theater provides. And this is how the
circular flow works.

Part 2

Note: An example of how to make these calculations is provided in the Unit I videos
Opportunity Cost and Law of Comparative Advantage.

Background Information
As mentioned in Part 1 of this assignment, Tyson and Ella work at Ruby Red Movie Theater.
Tyson can produce 100 bags of popcorn or 50 hot dogs in one hour. His coworker, Ella, can
produce 100 bags of popcorn or 30 hot dogs in an hour. Answer the following five questions
based on this information. Remember to show your work.

Production By
Hourly Production Tyson Ella
Bags of Popcorn
Or

100 100

Hot Dogs 50 30

Part 2A
If Tyson and Ella attempted to produce both popcorn and hot dogs, how many bags of popcorn
and hot dogs could each produce individually per hour? What would be the total number of
bags of popcorn and hot dogs produced per hour by the two workers combined? (Show your
work below.)

Each Trying to Produce Both

Production of

Popcorn Production of Hot Dogs
Tyson 50 25
Ella + 50 + 15
Total 100 40

Part 2B
Calculate the opportunity cost of producing bags of popcorn for each worker. (Show your
work.)

Opportunity Cost of Popcorn

Tyson:
Hot Dogs Made 25

÷ Bags of Popcorn Made 50
= 0.5

For every 1 bag of popcorn Tyson makes, he sacrifices 0.5 hot dogs.

Ella:
Hot Dogs Made 15

÷ Bags of Popcorn Made 50
= 0.3

For every 1 bag of popcorn Ella makes, she sacrifices 0.3 hot dogs.

Opportunity Cost of
Producing Popcorn

Tyson 0.5

Ella 0.3

Question
Answer

(Tyson or Ella)
Who has lowest opportunity cost of producing popcorn? Ella

Part 2C
Calculate the opportunity cost of producing hot dogs for each worker. (Show your work.)

Opportunity Cost of Hot Dogs

Tyson:
Bags of Popcorn Made 50

÷ Hot Dogs Made 25
= 2

For every 1 hot dog Tyson makes, he sacrifices 2 bags of popcorn.

Ella:
Bags of Popcorn Made 50

÷ Hot Dogs Made 15
= 3.33

For every 1 hot dog Ella makes, she sacrifices 3.33 bags of popcorn.

Opportunity Cost of
Producing Hot Dogs

Tyson 2

Ella 3.33

Question
Answer

(Ella or Tyson)
Who has lowest opportunity cost of producing hot dogs? Tyson

Part 2D
Determine how many bags of popcorn should be produced per hour by each worker. (Show
your work).

Who should specialize in producing popcorn? Tyson

Who should specialize in producing hot dogs? Ella

Specialization

Production of Bags

of Popcorn
Production of

Hot Dogs

Tyson 0 50

Ella 100 0

Total Production With Specialization 100 50

Total Without Specialization 100 40

Difference 0 +10

Part 2E
What potential ethical issues could arise from making the decision to have both employees
specialize in producing popcorn or hot dogs? Name and explain at least two issues.

There are two ethical issues I can gather from this. (1 ) Increased Dependency, (2) Monotonous
work.

Ethical Issues 1: Increased Dependency:

Because both employees are specialized in one of each good, the employer will become
dependent on both employees. When both employees can produce the goods without
specialization, the employer’s dependence on each employee will be reduced. Because when
one of those employees has a no-show day at work, both products can be manufactured by
another employee. But when employees specialize in producing one good, that employer must
make sure both employees show up to work. If either one of them has a no-show day, only one
of the two goods will be produced.

Ethical Issues 2: Monotonous Work:

Having two employees specialized in producing the good. Employees will only have the
opportunity to make the product they specialized in. This can make employees bored and also
dissatisfied. Also, this can hurt productivity along with company efficiency.

Reference
McEachern, W. A. (2019). Micro ECON6: Principles of microeconomics. Cengage Learning.
https://online.vitalsource.com/#/books/9781337671828

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