Answer to Question #87073 in Microeconomics for samantha

Question #87073
Tom is a full time lecturer and is considering a career in carpentry. In his current position he earns R 1000 per day and if he pursues a career in carpentry he would earn R 800 per day. due to flexibility of the employment conditions at the institution he works for, Tom can negotiate the number of days he worked at and will receive a rate of remuneration based on the days works. Construct a production possibility frontier to illustrate Tom's potential between the two careers if initially he was not working as a carpenter, then he worked one week per month, then two weeks, then three weeks and then four weeks per month, assuming only four weeks in the month.
Expert's answer

The production possibility frontier in this case is a bowed-out curve, which will show the potential combinations of working on both positions and the maximal possible amount earned. If y-axis is working as lecturer and x-axis is working as carpenter, then this curve will start at the point (0; R20000) and will end at the point (R16000; 0), if there is 20 working days per month (5 per week).

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