Feasible Frontiers for a Bakery
A bakery can produce two items: bread and cakes.
Scenario 1: The bakery has a single type of oven and bakers who are equally skilled at making both bread and cakes. The resources can be switched between making bread and cakes with no loss of efficiency.
Scenario 2: The bakery has specialized equipment. The bread ovens are very efficient for bread but poor for cakes, and the cake mixers are excellent for cakes but not for bread. The bakers also have specialized skills.
For each scenario, describe the likely shape of the bakery's feasible production frontier (linear or curved/bowed-out) and explain your reasoning by referring to the concept of opportunity cost.
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Feasible Frontiers for a Bakery