Donny, of Donny's Doughnuts, bakes and sells 100 dozen doughnuts a day using one mixer and one fryer. His rival, Sunshine, of Sunshine's Doughnuts, produces 180 dozen doughnuts a day using two mixers...

Donny, of Donny's Doughnuts, bakes and sells 100 dozen doughnuts a day using one mixer and one fryer. His rival, Sunshine, of Sunshine's Doughnuts, produces 180 dozen doughnuts a day using two mixers and two fryers. Both shops use the exact same technology to make doughnuts and have the same number of workers and the same size building.

Donny and Sunshine both increase their capital equipment by one mixer and one fryer.

Which shop will benefit the most from its expansion?

a.

Sunshine, because her operation was producing more doughnuts to start with.

b. Donny, because his workers currently have less available capital to work with.

c. The local weight‑loss clinic, because the number of doughnuts consumed will increase.

d. The shops will benefit equally because they are using the same quantity of equipment.

How much should Donny realistically expect his production to increase with the new equipment?

a. about 50 dozen

b. at least 100 dozen

c. about 80 dozen

How much should Sunshine realistically expect her production to increase with the new equipment?

a. about 50 dozen

b. at least 80 dozen

c. at least 100 dozen

Jun 10, 2022

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Donny, of Donny's Doughnuts, bakes and sells 100 dozen doughnuts a day using one mixer and one fryer. His rival, Sunshine, of Sunshine's Doughnuts, produces 180 dozen doughnuts a day using two mixers...

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