economics 340

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CleanAuto Inc. has four workers: Julie, Ian, Devon, and Thomas. CleanAuto Inc. provides two services: interior vacuuming and exterior wash. Julie can perform each of these tasks in one hour. Ian can do two interior vacuums or one exterior wash in one hour. Thomas can do two exterior washes or one interior vacuum in one hour. Devon only does exterior washes, and he can do an exterior wash in half an hour.

  • Calculate the number of interior vacuums and exterior washes done in each of the following staffing scenarios in an eight-hour workday.
    • Julie, Ian, and Thomas do only interior vacuuming, and Devon does only exterior washes.
    • All four do only exterior washes.
    • Julie, Ian, and Thomas each spend half their workday on each task, and Devon spends his entire day doing exterior washes.
    • Julie spends half of her time on each task, while Ian only does interior vacuums and Thomas and Devon only do exterior washes.
  • Create a graph of the production possibilities frontier (PPF) for this company using the answers from the calculations you completed for the above scenarios. Label each of the scenarios listed above as they appear on the PPF.
  • The assignment should contain one graph ONLY. All four data points are plotted on the one graph.
  • One half of all points (35.91) are for correct calculations of the four scenarios. Partial credit available for correct methodology but incorrect calculations.
  • One half of total points are for a correct graph. Partial credit for correct methodology but incorrect plot points and Production Possibilities Curve. Make sure you draw a PPF after all four data points have been plotted.
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