19. Which of the following statements is true? a Point A is inefficient. b. Point B is inefficient. C Point A is preferred to point B d. Point C cannot be attained with current technology. 20. Suppose there is a Production Possibilities Frontier (PPF) for garlic and cheese. Which of the following situations would shift the PPF inward (toward the origin)? @ A severe weather event that destroys much of the economy's productive capacity for garlic and cheese. b. Discovery of a new, cheaper source of milk for making cheese. C Increased popularity of garlic, as compared with cheese. d. A technological breakthrough. 21. Marginal cost is the change is cost that results from a one unit increase in OPrice b. Cost C Output d. Revenue

19. Which of the following statements is true? a Point A is inefficient. b. Point B is inefficient. C Point A is preferred to point B d. Point C cannot be attained with current technology. 20. Suppose there is a Production Possibilities Frontier (PPF) for garlic and cheese. Which of the following situations would shift the PPF inward (toward the origin)? @ A severe weather event that destroys much of the economy's productive capacity for garlic and cheese. b. Discovery of a new, cheaper source of milk for making cheese. C Increased popularity of garlic, as compared with cheese. d. A technological breakthrough. 21. Marginal cost is the change is cost that results from a one unit increase in OPrice b. Cost C Output d. Revenue

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter2: Economic Tools And Economic Systems

Section: Chapter Questions

Problem 3.5P

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Q20
1a. What is a Production Possibilities Frontier (PPF)? Consider an economy with only two goods: guns and butter. Show the tradeoff between the production of guns and the production of butter by drawing a (bowed outward) PPF (use gun production on the horizontal axis and butter production on the vertical axis). b. In what ways does the PPF reflect: i. scarcity and choice; and ii. increasing opportunity cost? c. How would the PPF be affected by a technological improvement in the production of guns? Solve all this question......you will not solve all questions then I will give you down?? upvote..
6. Efficiency in the production possibilities model Suppose Italy produces only two goods: potatoes and cars. The following graph shows Italy's current production possibilities frontier, along with six output combinations represented by black points (plus symbols) labeled A to F. A B с D E CARS (In millions) F 100 8 60 9 8 0 PPF <+ U 0 Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, feasible, or infeasible. Check all that apply. Point Inefficient Efficient Feasible U U L 0 xc U E 40 60 POTATOES (In millions) xo 00 000 100 Infeasible 000 ? 000 C
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Diagrams 1 and 2 below depict the production possibility frontier (PPF) for Rosie’s Bakery. Answer the questions below and show all calculations where appropriate. Explain in one paragraph how the PPF curve in Diagram 1 depicts the problem of scarcity for Rosie’s Bakery. Which points in Diagram 1 represent efficiency? Explain. “Every point on the PPF in Diagram 1 involves a trade-off.” Explain this by comparing a combination of related changes in values on the graph. From Diagram 1, calculate the opportunity cost of increasing the production of cakes from 8 to 12 with the opportunity cost of increasing the production of cakes from 12 to 14. Show all calculations. In Diagram 2, how would explain the shift from PPF1 to PPF2 at Rosie’s Bakery using economic theory?
Refer to Figure 3-8. If the production possibilities frontiers shown are each for one day of production, then which of the following combinations of coffee and soybeans could Chile and Colombia together make in a given day?
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a. Can point D be produced? Why?. b. What variable might shift the curve PPC1 to PPC2? What would cause the curves to meet at 40,000 quantities of butter produced? What does point E represent? C. d. Explain the movement from point A to B for the production of these two goods ?
1. Draw a production possibility curve (PPC) with the number of pounds of rice that can be produced in one hour on the vertical axis and the number of shoe that can be produced in one hour on the horizontal axis using the information in the table below. The following table reveals the production possibilities for the company: Possibility Rice Shoe А 50 В 45 1 37 2 D 27 3 E 15 4 F 2. On the PPC graph in question 1: (a) explain why the production combinations located on the PPC are superior to the combinations that are located inside the PPC (b) explain why the production combinations past the PPC are not attainable during a current one-hour period but could be attainable in a future one-hour period. 3. On a separate graph demonstrate the marginal cost of shoe production per hour. 4. What is allocative efficiency and how does it relate to the PPC? Explain and represent this phenomenon on a graph on the market for shoe.
4. The following question refers to the diagram below, which illustrates the PPF for a producer of two goods, x and y. PPF Which of the following statements is TRUE? 1. The marginal cost of producing x is higher at high levels of x than it is at low levels of II. The marginal cost of producing y is higher at high levels of y than it is at low levels of y. III. The marginal cost of producing both x and y is constant in the level of production. a) I only. b) Il only. c) Ill only. d) I and II only.
a) Country Utopia produces 40 widgets and 20 gadgets. Draw the PPF and explain. (1) b) What change can shift the PPF outward or to the right for Country Utopia? Please draw the shift and explain. (1) 2. "Two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of ALL goods." Please explain if the statement is true or false. Explain. (1) 3. Draw the following curve when, x = 1, x = 2, x = 3, x = 4, x = 5 (2.5) a) y = 2 + 5x b) Calculate the slope. Is the slope positive or negative? 4. Draw the following curve when, x = 1, x = 2, x = 3, x=4, x = 5 (2.5) a) y = 16 2x b) Calculate the slope. Is the slope positive or negative? can you draw all the slope and curves?
EX LO d @ Safari File Edit View History Bookmarks Window Help Lily ✓ My Home Courses Rental Options V Catalog and Study Tools Dashboard College Success Tips Help Career Success Tips Give Feedback « 100 CENGAGE MINDTAP PISTACHIOS (Millions of pounds) 48 42 36 Homework (Ch 03) The following graphs show the production possibilities frontiers (PPFS) for Shenandoah and Denali. Both countries produce peas and pistachios, each initially (i.e., before specialization and trade) producing 18 million pounds of peas and 9 million pounds of pistachios, as indicated by the grey stars marked with the letter A. 30 24 18 PPF 12 6 0 0 C Mind Tap - Cengage Learning 6 S Shenandoah A 12 18 24 30 PEAS (Millions of pounds) 36 42 48 ? JAN 28 PISTACHIOS (Millions of pounds) 48 42 36 30 24 6 C MindTap - Cengage Learning 0 ng.cengage.com PPF 6 Denali A 12 18 24 30 36 PEAS (Millions of pounds) 42 48 Shenandoah has a comparative advantage in the production of while Denali has a comparative advantage in the…