Question

A business produces picnic tables and benches. The business currently produces 20 tables and 10 benches per week. An increase in demand for benches has the business considering a change to 15 tables and 15 benches per week. What is the trade-off the business must make? A. the choice between the net profit of the new production schedule and the net profit of the old production schedule B. the difference between the profit of 10 benches and the profit of 15 benches C. the difference between the profit of 20 tables and the profit of 15 tables D. the choice between the cost of the new production schedule and the cost of the old production schedule

Answer 1

The trade-off the business must make involves determining what is lost in terms of production capacity for tables when they increase the production of benches. In this case, the business would be reducing the number of tables produced from 20 to 15 in order to increase the number of benches produced from 10 to 15.

Looking at the options provided, the most relevant choice that captures the essence of this trade-off is:

C. the difference between the profit of 20 tables and the profit of 15 tables.

This option highlights the loss in profit or benefit from making fewer tables versus the additional profit from making more benches, which is the central issue of the trade-off.