Which of the families in city will buy shirts from factory

Reference no: EM13199657

50 identical families are living in city A. They make each hour either one loaf of bread or one shirt.

Jim enters the town and makes a factory, which is employed by the locals. Every worker in the factory works on one machine and is able to produce 6 shirts per hour. The cost of running the machine is half a loaf of bread per hour, the cost to employ each worker is 1.5 loaves of bread per hour.

The customers of the factory are the families of city A.

The time it takes to travel back and forth to the factory is 5 minutes per kilometer. For example, someone who is 2 kilometers away from the factory will lose 10 minutes to make the trip back and forth to the factory.

Which of the families in the city will buy their shirts from the factory rather than make them themselves?

Reference no: EM13199657

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