3. Efficiency in the production possibilities modelSuppose the fictional country of Katmai produces only two goods: millet and handbags. The following graph plots Katmai's current productionpossibilities frontier, and includes six different output combinations given by black points (plus symbols) labeled A to F.HANDBAGS (Mona)ABCD100E8F00188PPFPoint Inefficient Efficient Unattainable0D00D+<0D20Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check allthat applyED60MILLET (Millions of bushels)008OODOx080100Ⓡ

Production Possibilities Frontier shows maximum combinations of two goods that can be produced with…

3. Efficiency in the production possibilities model Suppose the fictional country of Katmai produces only two goods: millet and handbags. The following graph plots Katmai's current production possibilities frontier, and includes six different output combinations given by black points (plus symbols) labeled A to F. HANDBAGS (Mon) 8 A B C 100 D E 8 F 8 PPF Point Inefficient Efficient Unattainable 0 D 0 0 D 0 +< 0 D 20 Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply E D 60 MILLET (Millions of bushels) B OOD 0 O 80 C 100 Ⓡ

3. Efficiency in the production possibilities model Suppose the fictional country of Katmai produces only two goods: millet and handbags. The following graph plots Katmai's current production possibilities frontier, and includes six different output combinations given by black points (plus symbols) labeled A to F. HANDBAGS (Mon) 8 A B C 100 D E 8 F 8 PPF Point Inefficient Efficient Unattainable 0 D 0 0 D 0 +< 0 D 20 Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply E D 60 MILLET (Millions of bushels) B OOD 0 O 80 C 100 Ⓡ

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.1P

See similar textbooks

Similar questions

Point A B C D E Production of X Production of Y 0 40 36 28 16 0 3 6 9 12 The above table shows production combinations on a country's production possibilities frontier. Which of the following is an example of a production point that is inefficient? OA. 10 units of good X and 16 units of good Y B. 6 units of good X and 28 units of good Y OC. 3 units of good X and 35 units of good Y OD. 0 units of good X and 40 units of good Y CEED
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.
Jake is a talented artist who sells hand-crafted goods on his website. Jake currently crafts and sells both tea towels and embroidered sweaters. He spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of his time is spent on each good. Choice A B с D E MBROIDERED SWEATERS 25 10 0 1 (Tea towels) 8 6 4 2 2 0 Hours Crafting 3 On the following graph, use the blue points (circle symbol) to plot Jake's initial production possibilities frontier (PPF). 4 TEA TOWELS 5 (Embroidered sweaters) 0 2 4 6 6 8 7 8 O Initial PPF A (Tea towels) 4 New PPF 3 2 1 0 (?) Produced (Embroidered sweaters) 0 12 17 19 20 Suppose Jake is currently using combination D, producing one tea towel per day. His opportunity cost of producing a second tea towel per day is per day. Now, suppose Jake is currently using combination C, producing two tea towels per day. His opportunity cost of producing a third tea towel per day is per day. ▼ From the previous…
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
The table provides information about the production possibilities of a firm that produces bed linens. Quilts (per hour) Possibility A B C Pillows (per hour) 0 8 and and and 16 12 0 Draw points that show the three possibilities defined by the table. Label them A. B. and C. Draw the firm's PPF by connecting the points. Label it. Along this PPF, the quantities of A. all goods other than pillows and quilts are increasing OB. all goods other than pillows and quilts remain constant OC. pillows and quilts are either increasing or decreasing, so there is no scarcity OD. all goods other than pillows and quilts are decreasing
Option Baseball Bats Tennis Racquets A 20 2 19 C 4 18 6. 16 8 10 F 10 The table above shows the production possibilities frontier for a company producing only 2 goods: baseball bats and tennis racquets. Suppose the company is currently producing 4 bats and 10 racquets all of which have been ordered by customers. If customer John puts in an order for 4 bats, so that the total number of bats to produce would then be 8, what is be the opportunity cost of filling John's order? 8 racquets 10 racquets nothing 18 racquets
Please solve it very quickly ?? ??
Why is a production possibilities frontier typically drawn as a curve, rather than a straight line?
Suppose the fictional country of Shenandoah produces only two goods: millet and telephoto lenses. The following graph plots Shenandoah's current production possibilities frontier, and includes six different output combinations given by black points (plus symbols) labeled A to F. A B с D TELEPHOTO LENSES (Millions) E 100 F 80 40 20 0 PPF U 0+ Point Inefficient Efficient Unattainable 0 0 20 Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply. U +0 E 40 60 MILLET (Millions of bushels) 00 'x 00 0 80 100
Q19 solutio n neded
Solve it on paper!
An economy produces two goods ,X and Y .lt uses two means of production, labour and capital. A unit of labour can produce either 1unit of X or 4units of Y (or linear combination of the two).A unit of capital can produce either 4units of X or 1unit of Y (or linear combination of the two)there are 100units of each means of production. (i) Draw the production possibility frontier of the economy when the two goods can only be produced by a mixture of both factors. (ii)What will be the opportunity cost of X if the economy produces 50units of X ? (iii) Given that the production technology is linear ,will the opportunity cost of X remain unchanged when we produce 90units of X ? (iv)Briefly explain the difference between the PPC with a constant opportunity cost and the PPC with an increasing opportunity cost as more output of one good is produced. Use a well labeled diagram to explain your answer?