Numerical Example

L = 10

Total available LABOR is 10 man-hours.

b = .5

half an hour of LABOR is needed to BAKE one loaf of BREAD

c = 1

one hour of LABOR is needed to WEAVE one yard of CLOTH

Suppose we want 6 loaves of BREAD.

Q_{B} = 6

How much CLOTH can we produce?

Q_{C} = ?

BAKING 6 loaves of BREAD takes 3 hours of LABOR.

L_{B} = b Q_{B }= (.5) 6 = 3

7 hours remain for WEAVING CLOTH

L_{C} =< L - L_{B} = 10 - 3 = 7

In 7 hours we can WEAVE at most 7 yards of CLOTH

Q_{C} = L_{C}/c = 7/1 = 7

If we want 6 loaves of BREAD we can produce at most 7 yards of CLOTH, given the limited amount of LABOR and existing technology of BAKING and WEAVING.

If we want 14 loaves of BREAD we can produce at most 3 yards of CLOTH, given the limited amount of LABOR and existing technology of BAKING and WEAVING

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