4. Suppose that Bill the Carpenter produces tables and chairs. One table requires 10 pieces of wood. One chair requires 5 pieces of wood. Assume that Bill has 100 pieces of wood. a. Find Bill's PPC for tables and chairs. Put tables on the vertical axis. Show graphically. b. What is the opportunity cost of one chair? c. If Bill instead has 200 pieces of wood, how does the PPC change? Show on the same graph. d. Now what is the opportunity cost of one chair?

4. Suppose that Bill the Carpenter produces tables and chairs. One table requires 10 pieces of wood. One chair requires 5 pieces of wood. Assume that Bill has 100 pieces of wood. a. Find Bill's PPC for tables and chairs. Put tables on the vertical axis. Show graphically. b. What is the opportunity cost of one chair? c. If Bill instead has 200 pieces of wood, how does the PPC change? Show on the same graph. d. Now what is the opportunity cost of one chair?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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P.nilesh
am. 109.
Diego and Kris are roommates. They spend most of their time studying, but they leave some time for their favorite activities: making pizza and brewing root beer. Diego takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza. Kris takes 6 hours to brew a gallon of root beer and 4hours to make a pizza. a) What is each roommate's opportunity cost of making a pizza? Who has the absolute advantage in making pizza? Who has the comparative advantage in making pizza? b) If Diego and Kris trade foods with each other, who will trade away pizza in exchange for root beer? c) The price of pizza can be expressed in terms of gallons of root beer, what is the highest price at which pizza can be traded that would make both roommates better off? What is the lowest price? Why?
based on the image and the PPF is point b efficient? why?
Use the PPF to answer the following questions: (a) At point F, how many sweaters are being produced? How many hard drives? (b) Label points A-H as either efficient, inefficient, or unattainable. (c) Can we determine if point F is productively efficient? If so, is it productively efficient? (d) Can we determine if point F is allocatively efficient? If so, is it allocatively efficient?
please answer thankyou.
Number of Tanks (1000’s) Number of Cars (1000’s) A. 0 150 B. 10 145 C. 20 130 D. 30 100 E. 40 60 F. 50 0 a) Graph the above information on a PPF. b)If we are operating at point C, what is the opportunity cost of moving to point D? c)If we are operating at point E, what is the opportunity cost of moving to point D? d)Where is the opportunity cost greater when giving up cars for tanks - moving from point B to C or from E toF? State the numbers. e) Where is the opportunity cost greater when giving up tanks for cars - moving from Point E to D or from point C to B? State the number
7. Two people make up a small economy producing oats and/or shirts. The table below shows the maximum each individual can produce in one day for each good (and any linear combination). Sam Lindsay Oats 300 150 Shirts 100 75 a) Who has the comparative advantage in producing Oats? In producing shirts? b) In terms of shirts, what is the cost of producing one unit of oats for Sam? For Lindsay? c) If the total number of shirts produced is 100, then how many units of oats will be produced if production takes place according to comparative advantage?
2. Consider a simple exchange economy with two people: Bob and Jake. Bob and Jake both have ten hours of time available. They can use their time to do one of two things: make pancakes or make hamburgers. Bob can make two hamburgers in an hour or one pancake in an hour. Jake can make three pancakes in an hour or four hamburgers in an hour. a.) Draw Bob and Jake’s PPFs with hamburgers on the x-axis. Give equations for both PPFs in y=mx+b form. b.) Can Bob and Jake both benefit from trade if the terms of trade are three pancakes per hamburger? Why or why not?
Concept Question 4.9 Question Help v A country produces pears and barley. 10- 1.) Using the 3-point curved line drawing tool, draw a representative PPC for this country. Label it PPC,. 2.) Suppose that a breakthrough in technology makes all agriculture more productive. Using the 3-point curved line drawing tool, draw a new PPC showing the effect of this change. Label it PPC,. Carefully follow the instructions above, and only draw the required objects. 10 Pears (millions of bushels per year) Barley (millions of bushels per year)
Figure 2 shows the PPF for an economy that produces Butter and Guns. Suppose the economy is currently producing 30,000 units of butter and 3,600 guns. What is the economy's opportunity cost of producing 10,000 additional units of butter? A) 600 Guns B) 1,000 Guns C) 1,400 Guns D) 1,700 Guns
This question is a file-upload question. Work your answer in a piece of paper, take a picture with your phone and upload the file. Using the table below answer the following: Points Soda Pizza A 10 В 1 6 3 a) Draw a PPF map (put soda in the vertical axis and pizza in the horizontal axis), showing all the points on the PPF. b) What is the opportunity cost of an extra pizza when you are on segment AB? What about when you are at segment CD? (i.e., how many sodas you have to give up in order to get an extra pizza? SHOW YOUR WORK!) c) What is your PPF's shape? Is it a straight line or does it have a bowed outward shape? Justify! d) Suppose that there is a new technology that affects ONLY the production of soda. Illustrate this effect on your PPF map.