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

The maximum amount of ham the residents can consume in a month are$10$.

Step-by-step solution

Step 1. Meaning of Economics.

Economics is the study of how humans make choices under conditions of scarcity. The division of labor allows a person to specialize in a particular skill.

Step 2. Finding the maximum amount.

The number of people required to produce a ham is $10$.

The number of people in the town is $100$.

The maximum amount of ham the residents can produce in a month

$$\begin{gathered} =100÷10 \\ =10 \end{gathered}$$.