justinhuff1250 justinhuff1250

19-02-2019
Business

contestada

suppose that alexi and tony can sell all their street tacos for $2 each and all their cuban sandwiches for $7.25 each. If each of them worked 20 hours per week, how should they split their time between the production of street tacos and cuban sandwiches? what is their maximum joint revenue?

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MrCreighton MrCreighton

19-02-2019

You don't have enough information to answer this question. You need to know how many of each of these Alexi and Tony can sell. Even though tacos bring in less revenue per unit, if the demand is great enough, tacos can still be the most profitable overall.

For example: Say they can sell 20 tacos per hour but only 2 cuban sandwiches per hours. They would make $40 per hour in tacos but only $14.50 in sandwiches.

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