opportunity cost

[nileiyen]

A worker can make 10 hats or 5 pairs of shoes in a day. In the market three hats can be sold at the same price as two pairs of shoes. The worker should make
A 4 hats and 3 pairs of shoes daily.
B 6 hats and 2 pairs of shoes daily.
C hats only.
D shoes only.

 

[romeopoomore]

Answer Is C
Consider the exchange ratio before anything else . Its 3H:2S and now to make your working easier you decide which currency to trade in . Either in H or in S . I decided to trade in H .
A) 4H + 3S simplifies to the 4H plus the 3 shoes in terms of H gives you (9/2)H using direct proportions and hence total revenue is 8.5H
B) similar working you get 9H
C)10H
D) convert and you get 7.5H
And since the worker wants to make the most revenue s/he then chooses C)

Or working in the shoe currency
1S:1.5H
A) (8/3)S +3S =(17/3)S
B) 4S+2S=6S
C)(20/3)S
D) 5S
Still we get the highest revenue in option C no matter the currency we use so the correct answer is then C)
Feel free to ask for clarity