Alice's Production Possibilities Frontier Betty's Production Possibilities Frontier 500 4.50 400 350- lemonade 300- 250 + 200 Alice and Betty's Production Possibilities in one 8-hour day. 150+ 100 50+ 50 100 150 200 250 300 350 400 pimas 500 450 400+ 3.50 300 250 200- 150 100 50 lemonade B(180,180) 50 100 150 200 250 300 350 400 yimas Refer to Figure 3-22. Which of the following statements is correct regarding comparative advantage? Oa. Alice has a comparative advantage in the production of both lemonade and pizzas. Ob. Betty has a comparative advantage in the production of both lemonade and pizzas. O Alice has a comparative advantage in the production of pizzas while Betty has a comparative advantage in the production of lemon Od. Alice has a comparative advantage in the production of lemonade while Betty has a comparative advantage in the production of pizz

Alice's Production Possibilities Frontier Betty's Production Possibilities Frontier 500 4.50 400 350- lemonade 300- 250 + 200 Alice and Betty's Production Possibilities in one 8-hour day. 150+ 100 50+ 50 100 150 200 250 300 350 400 pimas 500 450 400+ 3.50 300 250 200- 150 100 50 lemonade B(180,180) 50 100 150 200 250 300 350 400 yimas Refer to Figure 3-22. Which of the following statements is correct regarding comparative advantage? Oa. Alice has a comparative advantage in the production of both lemonade and pizzas. Ob. Betty has a comparative advantage in the production of both lemonade and pizzas. O Alice has a comparative advantage in the production of pizzas while Betty has a comparative advantage in the production of lemon Od. Alice has a comparative advantage in the production of lemonade while Betty has a comparative advantage in the production of pizz

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5. Opportunity cost and production possibilities Edison is a skilled toy maker who is able to produce both boats and puzzles. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. ^ Hours Producing Produced Choice (Boats) (Puzzles) (Boats) (Puzzles) A 8 0 4 0 B 6 2 3 10 C 4 4 2 16 D 2 6 1 19 E 0 8 0 20 On the following graph, use the blue points (circle symbol) to plot Edison's initial production possibilities frontier (PPF). 9 &
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FIGURE 2-10 Wheat (bushels) Apples (bushels) 0 Refer to Figure 2-10. What movement along the production possibilities curve best illustrates the notion "To get more apples, we have to give up wheat"? 4 a movement from Point A to Point E a movement from Point E to Point C a movement from Point A to Point D a movement from Point B to Point E
Use the table to answer questions 1. What is the oppourtonity cost of producing 800 tons of fruit instead of 450?
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5. Opportunity cost and production possibilities Raphael is a skilled toy maker who is able to produce both trucks and kites. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. Choice Hours Producing Produced (Trucks) (Kites) (Trucks) (Kites) A 8 0 4 0 B 6 2 3 10 C 4 4 2 16 D 2 6 1 19 E 0 8 0 20 On the following graph, use the blue points (circle symbol) to plot Raphael's initial production possibilities frontier (PPF). ( attached image) Suppose Raphael is currently using combination D, producing one truck per day. His opportunity cost of producing a second truck per day is( 1, 3, 16, 19 kites) per day. Now, suppose Raphael is currently using combination C, producing two trucks per day. His opportunity cost of producing a third truck per day is ( 1,6,10, or 16 kites) per day. From the previous analysis, you can determine that as…
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A) Which of the diagrams above best explains improved technology in the production of cars? B) Which of the diagrams above best explains improved technology in the harvesting of grapes? C) Which of the diagrams above best explains overall improvements in productivity?
Refer to the production possibility frontiers for two friends Frodo and Sam who can both produce Ice creams and Jelly beans. Frodo's maximum production of Ice creams is 500 with no Jelly beans, or 2,000 Jelly beans with no Ice creams. Sam's maximum production of Ice creams is 600 with no Jelly beans, or 1,200 Jelly beans with no Ice creams. ICE CREAMS ICE CREAMS 600 500 1200 JELLY BEANS 2000 JELLY BEANS Frodo' PPF Sam's PPF Answer briefly these TWO questions in the box space provided below. Part A: Assuming efficient production without trade, derive the maximum amount of Jelly beans that can be produced by Sam along with 300 Ice creams. Describe your steps in detail. Part B: Assume that Frodo and Sam agree to specialize in production and trade between themselves. Frodo offers 1,000 Jelly beans to Sam in exchange for 300 lce creams. Would Sam agree to this trade?
QUESTION 9 product Y product Y 28 # 20 16 12 00 8 4 0 28 24 20 16 12 8 4 0 0 Fig. A Production Possibilities Frontier 4 PPFO PPFO 4 8 PPFn 8 12 Fig. C Production Possibilities Frontier PPFn 16 12 Point E 20 24 product X 16 Point E 20 product Y 2 product Y 28 20 16 12 8 4 0 20 16 12 8 4 0 0 Fig. B Production Possibilities Frontier 0 PPFO 4 8 4 PPFo PPFn 12 8 24 product X 09. In figure A the shift of the Production Possibilities Frontier outward would be best explained by: O (a) a movement towards efficient production. O (b) an increase in demand for both products. (c) an increase in specialization of resources. O (d) an increase in available resources specific to the production of good X. (e) an increase in available resources specific to the production of good Y. Fig. D Production Possibilities Frontier PPF 16 Point E 12 20 24 product X 16 Point E 20 24 product X