1. Production Possibilities Schedule:
| Running Shoe Inserts | Hiking Boot Inserts |
|----------------------|---------------------|
| 15 | 0 |
| 12 | 2 |
| 9 | 4 |
| 6 | 6 |
| 3 | 8 |
| 0 | 10 |
2. Production Possibilities Curve:
[Inserting textboxes and shapes to illustrate the curve]
A: 15 running shoe inserts, 0 hiking boot inserts
B: 12 running shoe inserts, 2 hiking boot inserts
C: 9 running shoe inserts, 4 hiking boot inserts
D: 6 running shoe inserts, 6 hiking boot inserts
E: 3 running shoe inserts, 8 hiking boot inserts
F: 0 running shoe inserts, 10 hiking boot inserts
3. Yes, the resources are being used efficiently. The production possibilities curve shows that the Shoe Hut is producing at the maximum level of output for the given resources. Any point on the curve represents the most efficient use of resources, and the Shoe Hut is producing at one of those points.
4. Based on the information presented, I would recommend that the Shoe Hut focus on producing running shoe inserts. This is because the opportunity cost of producing hiking boot inserts is higher than the opportunity cost of producing running shoe inserts. For every 2 hiking boot inserts produced, the Shoe Hut gives up the production of 3 running shoe inserts. This means that the Shoe Hut has a comparative advantage in producing running shoe inserts. Additionally, the production possibilities curve shows that the Shoe Hut can produce up to 15 running shoe inserts, but only 10 hiking boot inserts. This further supports the recommendation to focus on running shoe inserts.