Question

Residents of the town of Smithfield like to consume hams, but each ham requires 10 people to produce it and takes a month. If the town has a total of 100 people, what is the maximum amount of ham the residents can consume in a month?

Short answer

$100$ people would produce $10$hams a month.

Step-by-step solution

Step 1:Concept

The term "basic production function" refers to a function that is performed on a regular basis.

$\mathrm{f}=\mathrm{Q}\left(\mathrm{KL}\right)$

where Q stands for output,

f stands for function notation,

K stands for capital, and

L stands for labour.

Explanation

If all residents produce ham,

100 individuals / 10 people per ham equals a limit of 10 hams every month.

Because manufacturing limits consumption, people can only consume a maximum of 10 hams per month.

Step 3:Conclusion

Therefore, in a month, 100 people could manufacture 10 hams.