d) Suppose it is determined that 400 bicycles must be produced. How many bowling balls can be produced? e) Where will these goods be produced?

The answer to this question depends on the amount and the type of resources available. If there are enough resources to manufacture both bicycles and bowling balls and the companies manufacturing these products could sell all of the products that they would make, then the companies would make both products.
If there are not enough resources to make both products, the companies will need to determine the supply and demand for each product and then determine how much they can sell. Since there are not enough resources to make both products, the companies will need to determine which product will bring them a greater profit. This includes the ability to sell the products, what the profit margin is for each product, what kind of competition already exists in the industry, and if the products are popular in the eyes of the consumers. Once these concepts are determined, the companies will need to examine the opportunity cost of producing each product. Eventually, a decision will be made, and the companies would begin manufacturing the product that would bring them the greatest profit. This would be done in the location where their factories exist.
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