2. Using the information below, graph the production possibilities curve for Cal Poly jam and Cal Poly BBQ sauce on the graph below. Then, determine the maximum revenue producing combination using the methods discussed in class. Please show this point on the graph, draw an isoravenue line through it (label it point A), and calculate the total revenue produced from this combination. onen–BBQ Sauce (YT) Cases of Cal Poly Jam (Y2) 135 128 119 108 95 80 63 44 23 0 Price of Cal Poly Jam (Py2) = $90.00/case Price of BBQ Sauce (Py=$135.00/case a. Total Revenue at Revenue-Max Combination 140 120 100 80 60 40 20 0 0 10 20 30 40 50 6.0 70 80 90 20 40 60 80 100 MRPS NIPR b. What would happen to the output combination if the price of a case of BBQ Sauce increased to $171.00? Draw a new isorovenuo, line through this point and label it B. c. Calculate the new total revenue for the food processing plant at the new combination.
2. Using the information below, graph the production possibilities curve for Cal Poly jam and Cal Poly BBQ sauce on the graph below. Then, determine the maximum revenue producing combination using the methods discussed in class. Please show this point on the graph, draw an isoravenue line through it (label it point A), and calculate the total revenue produced from this combination. onen–BBQ Sauce (YT) Cases of Cal Poly Jam (Y2) 135 128 119 108 95 80 63 44 23 0 Price of Cal Poly Jam (Py2) = $90.00/case Price of BBQ Sauce (Py=$135.00/case a. Total Revenue at Revenue-Max Combination 140 120 100 80 60 40 20 0 0 10 20 30 40 50 6.0 70 80 90 20 40 60 80 100 MRPS NIPR b. What would happen to the output combination if the price of a case of BBQ Sauce increased to $171.00? Draw a new isorovenuo, line through this point and label it B. c. Calculate the new total revenue for the food processing plant at the new combination.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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