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A) Draw Watney's production possibilities curve/frontier for one day's worth of production. Be sure that you include units on the axes. B) What is Watney's opportunity cost for 1 gallon of water? C) What accounts for the shape of the PPC? In other words, what type of opportunity cost does Watney's situation demonstrate?

A) Draw Watney's production possibilities curve/frontier for one day's worth of production. Be sure that you include units on the axes. B) What is Watney's opportunity cost for 1 gallon of water? C) What accounts for the shape of the PPC? In other words, what type of opportunity cost does Watney's situation demonstrate?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Answer the following questions and submit to the appropriate space on Canvas. 1. Mark Watney is in a rather disastrous situation - stranded on Mars with little hope of rescue and few resources to survive. Watney can use his time and equipment to grow potatoes or distill clean water. If he uses all of his available resources, he can grow 2 pounds of potatoes an hour. If Watney uses all of his resources to distill clean water, he can distill 1 gallon per hour. He is slightly injured, so to help heal himself, he chooses not to work more than 10 hours out of every 24 hours. A) Draw Watney's production possibilities curve/frontier for one day's worth of production. Be sure that you include units on the axes. B) What is Watney's opportunity cost for 1 gallon of water? C) What accounts for the shape of the PPC? In other words, what type of opportunity cost does Watney's situation demonstrate? D) Illustrate on your graph from part A what would happen if Watney used his engineering skills to improve the efficiency of his water distillation efforts allowing him to distill larger quantities of water.
Transcribed Image Text:Answer the following questions and submit to the appropriate space on Canvas. 1. Mark Watney is in a rather disastrous situation - stranded on Mars with little hope of rescue and few resources to survive. Watney can use his time and equipment to grow potatoes or distill clean water. If he uses all of his available resources, he can grow 2 pounds of potatoes an hour. If Watney uses all of his resources to distill clean water, he can distill 1 gallon per hour. He is slightly injured, so to help heal himself, he chooses not to work more than 10 hours out of every 24 hours. A) Draw Watney's production possibilities curve/frontier for one day's worth of production. Be sure that you include units on the axes. B) What is Watney's opportunity cost for 1 gallon of water? C) What accounts for the shape of the PPC? In other words, what type of opportunity cost does Watney's situation demonstrate? D) Illustrate on your graph from part A what would happen if Watney used his engineering skills to improve the efficiency of his water distillation efforts allowing him to distill larger quantities of water.
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