Consider some economy d (denmark), which produces two goods, beer and flowers. it takes one unit of labor for d to make a unit of flowers, and 2 units of labor to produce beer. d has 48 units of labor available. call the quantity of flowers consumed by denmark fp, and the quantity of beer consumed by denmark bp. there is a social welfare (utility) function given by up = bp • fp. a. what is the opportunity cost of beer in denmark in autarky? b. the optimal production choice in autarky (which must also be consumption in autarky) in denmark is 24 flowers and 12 beer. draw a graph illustrating this optimal choice, labeling the relevant values (endpoints, output, opportunity cost, and social welfare) precisely.

Cadbury has a chocolate factory in dunedin, new zealand. for easter, it makes two kinds of “easter eggs”: milk chocolate and dark chocolate. it cycles between producing milk and dark chocolate eggs. the table below provides data on these two products. demand (lbs per hour) milk: 500 dark: 200 switchover time (minutes) milk: 60 dark: 30 production rate per hour milk: 800 dark: 800 for example, it takes 30 minutes to switch production from milk to dark chocolate. demand for milk chocolate is higher (500lbs per hour versus 200 lbs per hour), but the line produces them at the same rate (when operating): 800 lbs per hour. a : suppose cadbury produces 2,334lbs milk chocolate and 1,652 lbs of dark chocolate in each cycle. what would be the maximum inventory (lbs) of milk chocolate? b : how many lbs of milk and dark chocolate should be produced with each cycle so as to satisfy demand while minimizing inventory?