1. French Production (35 points - all parts are worth 5 points apiece) The following production possibilities table data represent the amount of loaves of bread and number of bagels produced in France in a given day. Option ABCDEB Bread Bagels 600,000 0 450,000 25,000 300,000 50.000 150,000 0 75.000 100,000 H Plot the above options as a production possibilities curve, placing bagels on the x- axis and bread on the y-axis. b. What is the numerical value for the y-intercept on this graph? C Solve for the slope between each point, or option, on the graph. d. State the cost ratio of between the two products between each point, or option, on the graph. Specify the values associated with each product in the cost ratio. e. Does the Law of Increasing Opportunity Costs hold in this specific example? Explain why or why not. f. Show a point of inefficiency on your graph. Label this as I. g. Show a point that is currently unattainable on your graph. Label this as U.
1. French Production (35 points - all parts are worth 5 points apiece) The following production possibilities table data represent the amount of loaves of bread and number of bagels produced in France in a given day. Option ABCDEB Bread Bagels 600,000 0 450,000 25,000 300,000 50.000 150,000 0 75.000 100,000 H Plot the above options as a production possibilities curve, placing bagels on the x- axis and bread on the y-axis. b. What is the numerical value for the y-intercept on this graph? C Solve for the slope between each point, or option, on the graph. d. State the cost ratio of between the two products between each point, or option, on the graph. Specify the values associated with each product in the cost ratio. e. Does the Law of Increasing Opportunity Costs hold in this specific example? Explain why or why not. f. Show a point of inefficiency on your graph. Label this as I. g. Show a point that is currently unattainable on your graph. Label this as U.
Chapter2: Economic Tools And Economic Systems
Section: Chapter Questions
Problem 3.5P
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Transcribed Image Text:1. French Production (35 points - all parts are worth 5 points apiece)
The following production possibilities table data represent the amount of loaves of
bread and number of bagels produced in France in a given day.
Option
ABCDEB
Bread
Bagels
600,000
0
450,000
25,000
300,000
50.000
150,000
0
75.000
100,000
H
Plot the above options as a production possibilities curve, placing bagels on the x-
axis and bread on the y-axis.
b. What is the numerical value for the y-intercept on this graph?
C
Solve for the slope between each point, or option, on the graph.
d. State the cost ratio of between the two products between each point, or option, on
the graph. Specify the values associated with each product in the cost ratio.
e. Does the Law of Increasing Opportunity Costs hold in this specific example?
Explain why or why not.
f. Show a point of inefficiency on your graph. Label this as I.
g. Show a point that is currently unattainable on your graph. Label this as U.
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