A production possibilities table for DVDS and computers is shown below. Production Alternatives B Type of Production Computers DVDS A D E 20 40 60 80 80 70 55 35 a. Show these data graphically, and then identify a point that indicates an inefficient use of resources and a point that indicates an unattainable combination of goods. Instructions: Use the tool provided 'PPC' to draw a PPC curve (plot 5 points total). 100 Tools 80 PPC F 60 40 G 20 20 40 60 80 100 Computers Point [(Click to select) |is an example of an inefficient point, while point (Click to select) |is an example of an unattainable point. b. Does the economy above demonstrate the law of increasing opportunity cost? (Click to select) DVDS

A production possibilities table for DVDS and computers is shown below. Production Alternatives B Type of Production Computers DVDS A D E 20 40 60 80 80 70 55 35 a. Show these data graphically, and then identify a point that indicates an inefficient use of resources and a point that indicates an unattainable combination of goods. Instructions: Use the tool provided 'PPC' to draw a PPC curve (plot 5 points total). 100 Tools 80 PPC F 60 40 G 20 20 40 60 80 100 Computers Point [(Click to select) |is an example of an inefficient point, while point (Click to select) |is an example of an unattainable point. b. Does the economy above demonstrate the law of increasing opportunity cost? (Click to select) DVDS

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 3 ( A B C D E Production Point Mountain Bikes a) straight-line; increase Ob) straight-line; decrease Oc) curved; decrease 0 30 50 60 65 d) curved; increase Beer 100 90 70 40 Refer to the table above. if you were to plot the points, then this would be a PPF, so when you try to produce 5 more mountain bikes from 60 to 65, the opportunity cost of beer will at a higher rate. 0
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05. What is the per-unit opportunity cost of product Y as production moves from point D to point B? a) 6/7 b) -6/7 c) 7/6 d) -7/6
Complete the following table. Also find the quantity that maximizes surp Quantity Total Benefit Total Cost Marginal Benefit Marginal Cost 0 0 15 400 66.67 2200 800 26.67 50 2000 140 60 6000 100 7000 8000 33.33 150 8000 20000 Calculate the following marginal opportunity costs using the graph showing oranges and cherries a. Increasing orange production from 50 to 80 b. Increasing cherry production from 100 to 200 c. Increasing orange production by 2 d. Increasing cherry production by 30
5. Draw a Production Possibilities Graph for Toyota using the following information: A B C E F Trucks 20 28 35 40 43 45 Cars 54 52 49 43 35 25 A. Which combination(s) on the graph are considered efficient?
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?
Use the following table to answer the question below. Alexandra’s Production Possibilities Schedule Natalia’s Production Possibilities Schedule Number of Scarves Knitted per Day Number of Sweaters Knitted per Day Number of Scarves Knitted per Day Number of Sweaters Knitted per Day 0 4 0 4 3 3 2 3 6 2 4 2 9 1 6 1 12 0 8 0 Which of the following is an acceptable term of trade? Multiple Choice 2 sweaters for 7 scarves 4 sweaters for 10 scarves 8 sweaters for 15 scarves 6 sweaters for 10 scarves
Graph A Graph B Graph C Graph D Which of the above 4 graphs best represents the change in the PPF if a tornado destroys part of the country?
A production possibility frontier corn. The farmer can grow 80 bushels of soybeans or 160 bushels of corn on each acre of land. The price of soybeans is $13.20 per bushel. The price of corn is $5.85 per bushel. A farmer can grow soybeans or What is the opportunity cost (in dollars) per acre to grow soybeans? Corn? Which crop (pick only one) do you think the farmer will produce? Why?
2 ) Use the graph to calculate Mary’s opportunity cost of an hour of skating when she increases her time spent skating from: a) 2 to 4 hours a week. b) 4 to 6 hours a week. c) describe the relationship between the time Mary spends skating and the opportunity cost of an hour of skating.
A B C D E F Production Options Output of Output of Trucks per Day Tanks per Day 0 2.0 5 4 3 2 1 0 3.0 3.8 4.5 5.0 Output of Trucks (per day) 5 A A 0 0 1 B What is the opportunity cost of the first truck produced? Instructions: Enter your response rounded to one decimal place. tank(s). 2 3 4 E Output of Tanks (per day) F 5 6