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?(1 point)

Question

Responses

the choice between the cost of the new production schedule and the cost of the old production schedule
the choice between the cost of the new production schedule and the cost of the old production schedule

the choice between the net profit of the new production schedule and the net profit of the old production schedule
the choice between the net profit of the new production schedule and the net profit of the old production schedule

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

the difference between the profit of 10 benches and the profit of 15 benches

Answer 1

The trade-off the business must make in this scenario is primarily related to the opportunity cost associated with reallocating production resources from tables to benches.

Given the context, the most relevant response would be:

the difference between the profit of 10 benches and the profit of 15 benches.

This is because the business is increasing the production of benches from 10 to 15, which means they will be producing 5 fewer tables (going from 20 to 15). The trade-off analysis focuses on the additional profit (or potentially lost profit) from producing those 5 additional benches compared to the profit from the 5 tables that will no longer be produced.