4. Suppose the production possibility frontier for meat (M) and potatoes (P) is givenby:2P + 4M = 200a. Suppose that people prefer to eat two potatoes with every pound of meat, howmuch of each product will be produced?b. Assuming that this economy is operating efficiently, what price ratio mustprevail?

In economic matters and other sociologies, preference is the demand that a specialist provides for…

Answered: 2P + 4M = 200 se that people prefer to…

2P + 4M = 200 se that people prefer to eat two potatoes with every pound of mea of each product will be produced? ning that this economy is operating efficiently, what price ratio m 12

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.1P

See similar textbooks

Related questions

Q: An economy produces two goods ,X and Y .lt uses two means of production, labour and capital. A unit…

A: we will be answering the first 3 sub parts of the question as particular sub part is not mentioned.…

Q: Graph the demand and marginal curves..each line should contain 6 reference points

A: The Maximum price of each individual is given. So, when the price is $50,000 only Buyer A will…

Q: 5. An ecological efficiency of 10% in a marine ecosystem means that energy consumed at one trophic…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: 365 ht, Library, and ng Resources soft Teams ngs soft Teams s "Marble Madness" is a local carnival…

A: We are given that,there are 100 total marbles in a bag: 2 red, 8 orange, 10 yellow, 30 green, 30…

Q: LA) LB) P 10 P 7 3 10 A پشم ez SI Q explain in your own words

A: Demand refers to the quantity of a good or service that a consumer is willing and able to buy at a…

Q: Figure 1 The production possibility frontier ABCDE is a production possibility frontier. It shows…

A: The Production Prospects Frontier (PPF) is a chart that shows every one of the various mixes of…

Q: Question 31 A production possibilities curve that is a straight line results O always exchanging one…

A: PPF stands for Production Possibility Frontier. It is a graphical representation that shows the…

Q: 5. Fiscal policy, the money market, and aggregate demand Consider a hypothetical economy in which…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: An automobile dealer can sell 8 sedans per day at a price of $20,000 and 4 SUVs (sport utility…

A: At a price $20,000, an automobile dealer can sell 8 sedans per day so at a price of $20,000 quantity…

Q: Twenty percent of people at a company picnic got food poisoning. What percent of the people at the…

A: Percentage is the number (no.) which shows a proportion/ratio of 100. It is depicted by symbols such…

Q: Previous Question sported to an electric power plant where it will be used as fuel. Data for the…

A: Location Costs: Is the factor in the recipe expected to be applied to those additional costs which…

Q: Chile's Production Possibilities Frontier Colombia's Production Possibilities Frontier 20 Totea 20…

A: The production possibilities curve (PPC): The curve shows different combinations of output that can…

Q: Suppose Van is currently using combination D, producing one boat per day. His opportunity cost of…

A: Aproduction possibility frontier (PPF) shows the maximum possible output combinations of two goods…

Q: 4. Exhibit 17-8 represents the consumer market for higher education. Exhibit 17-8 dollars per year…

A: In the free market, the optimal point will be at the point where, PMB (Private marginal benefit) =…

Q: Based on the production possibilities table is it possible to produce 3 agricultural goods and 35…

A: Production possibility refers to the different combinations of goods and services that an economy or…

Q: Total Molasses C. 20 10 30 15 5 25 0- 0 Total Potatoes 0 5 10 15 Total Potatoes Total Molasses 30 25…

A: The production possibility curve is the different production scenarios for the producer for a given…

Q: The concept of opportunity cost is that the economic cost of using a factor of production is the…

A: An opportunity cost shows the possible gains that a person, buyer, or organization lacks by…

Q: Imagine that it costs $40 in the United States to produce one ton of soybeans and transport them to…

A: The inquiry gave bargains the financial guideline of near advantage, which makes sense of how…

Q: Difference between actual amount received and what they would accept is known as O Producer Surplus…

A: The actual amount received is knowns as market price and the price or amount would accept is known…

Q: 5. The relationship between marginal and average costs Consider the following scenario to understand…

A: Marginal cost is the change in total cost because of change in output. Average cost is the cost…

Q: None

A: To answer the question, the following steps were taken:Identify Relevant Points on the Graph: We…

Q: Which one of the above figures represents an economy's production possibilities frontier? OA. B OB.…

A: The production possibility curve is the graphical representation of the combination of the two goods…

Q: IMAGE According to the following graph, what is the optimal level of production (optimal quantity)?…

A: In case of externality the private cost and the social cost are different.Private cost is the cost…

Q: 1 Optimizing Production Efficiency: A Study on Production Possibility Frontier

A: The production possibility frontier (PPF) is a crucial tool for analyzing and optimizing production…

Q: Set up the objective function and the constraints, but do not solve. Wison Electronics produces a…

A: The correct answer is given in the second step.

Q: What obstacles to transferring resourcest to India and Brazil is Xiaomi likely to experience, and…

A: Xiaomi is a leading smartphone manufacturing company, which is a China based company. Its main…

Q: Bicycles 14 A 12 10 8 6 4 2 0 B 2 4 C D E 8 10 6 Computers Refer to the diagram. If society is…

A: PPC stands for Production Possibility Curve, also known as the Production…

Q: You decide to buy a car. The following are some questions you have to answer with respect to your…

A: Engineering economics is an assortment of procedures for quantitative examination to choose the best…

Q: Price 3 X 2 1 150 450 300 600 900 Quantity per month 4 10 750 1050,200 1350 Suppose that in December…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…

Q: Graph A A2 A B2 Graph B B Graph C Which graph illustrates the effects on purchases of Corvettes, if…

A: Total demand: Total demand is a microeconomic concept and is calculated for each individual. The…

Question

4. Suppose the production possibility frontier for meat (M) and potatoes (P) is given
by:
2P + 4M = 200
a. Suppose that people prefer to eat two potatoes with every pound of meat, how
much of each product will be produced?
b. Assuming that this economy is operating efficiently, what price ratio must
prevail?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Follow-up Questions

Read through expert solutions to related follow-up questions below.

Follow-up Question

I quite don't understand question a.

Solution

by Bartleby Expert

SEE SOLUTION

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The graph below is Mendork's production possibility curve for the only two goods that it produces-quirks and quarks. Quantity of Quarks 800 700 600 500 400 300 200 100 A 2 4 6 8 10 12 14 16 18 20 Quantity of Quirks Select one: Refer to the graph above to answer this question. If new technology increased the output of quirks by 50%, how many quirks could be produced if 700 quarks were produced? B A. 9 quirks. B. 18 quirks. C. 10 quirks. D. 20 quirks. E. No quirks.
2. Consider an economy that produces only two goods: asparagus and candy canes. The following table describes the quantities of each good that can be produced: Candy Canes 60 40 20 0 Asparagus 0 10 20 30 (a) Plot the production possibilities frontier for this economy. Be sure to label both axes and each intercept. (b) Does this PPF follow the law of increasing opportunity cost? Why or why not? (c) A major pandemic arises that wipes out one third of the population. Illustrate and explain how this would affect the PPF from part (a).
2. Below is a production possibilities frontier (PPF) for Happyland, acountry that produces only two goods- wine and cheese. wine cheese a) Explain what the production possibilities frontier is and how it illustrates scarcity. b) What happens to the marginal opportunity costof cheese production in Happyland as the country increases its cheese production? (increase, decrease, unchanged or indeterminate?) Explain how you can tell this from the PPFand why it happens. c) Briefly describe two specific policies the government of Happyland could undertake to shift out their PPF in future periods. (By specific policies, I mean something they can actually do to change productivity for either or both of these goods. "Increase resources," for example, is not a specific policy. What resources and what type of policy could increase the resources used for either of these products?)
Sue Tom Good A 10 4 Select one: Good B 15 5 As shown in the table above, Sue and Tom each can produce two different types of goods. For Sue, if she only produces Good A, then she can produce 10 units of Good A per day. If she only produces Good B, then she can produce 15 units of Good B per day. For Tom, if he only produces Good A, then she can produce 4 units of Good A per day. If she only produces Good B, then she can produce 5 units of Good B per day. Which of the following statement is correct about comparative advantage? O a. Tom has a comparative advantage over Sue in the production of Good A. Sue has a comparative advantage over Tom in the production of Good B O b. Tom has a comparative advantage over Sue in both tasks O c. Sue has a comparative advantage over Tom in both tasks O d. Sue has a comparative advantage over Tom in the production of Good A. Tom has a comparative advantage over Sue in the production of Good B
3. Efficiency in the production possibilities model Suppose the fictional country of Olympia produces only two goods: millet and microprocessors. The following graph plots Olympia's current production possibilities frontier, and includes six different output combinations given by black points (plus symbols) labeled A to F. MICROPROCESSORS (Millions) 100 80 40 20 O 0 PPF +T 20 +< A 40 + E B * D 60 MILLET (Millions of bushels) хс 80 100 (?)
a. What method is used to ration goods in a market economy?How does this rationing method influence the incentiveof individuals to supply goods, services, and resourcesto others?b. How are grades rationed in your economics class? Howdoes this rationing method influence student behavior?Suppose the highest grades were rationed to those whomthe teacher liked best. How would this method of rationinginfluence student behavior?
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 ?
PLEASE SHOW ME HOW TO DO THE RIGHT CALCULATIONS.
The budget constraint model and the production possibilities frontier (PPF) model both illustrate (select ALL that apply): O allocative efficiency O productive effieciency O a curved line to represent both the budget constraint and the PPF the tradeoffs in choosing more of one good at the cost of less of the other O comparative advantage O constraints on what we can have due to scarce resources
Figure 1 The production possibility frontier ABCDE is a production possibility frontier. It shows the different combinations of goods which can be produced if all resources are fully and efficiently utilised. The economy can produce at any point on the line. It cannot produce at G because the PPF shows the maximum that can be produced. It can produce within the PPF,05 such as at F, but less will be produced than the maximum possible. Non-manufactured goods 50 40 30 20 10 0 A 10 B Ti C 20 30 Manufactured goods G D E 40
What are the similarities between a consumers budget constraint and societys production possibilities frontier, not just graphically but analytically?
True or false