Aram sees the opportunity cost of Frisbees (discs) and Boomerangs as 1 Frisbee 0.75Boomerangs (and 1 Boomerang = 1.333 Frisbees). Hana sees the opportunity cost of thesesame goods as 1 Frisbee = 1.25 Boomerangs (and 1 Boomerang 0.8 Frisbees).%3Da) Explain how these observations are the basis for exchange and start the development ofmarkets for these goods.b) If your first name begins A - L: Describe and discuss the market and market equilibriumfor Boomerangs. If your first name begins M - Z: Describe and discuss the market andmarket equilibrium for Frisbees. A diagram specific to your assigned market is expected.Diagrams should be properly labeled and integrated into the description/discussion youpresent. Not just an "add-on".UploadChoose a File

The opportunity cost is the cost of utilizing something that is now the worth of the greatest…

Answered: Aram sees the opportunity cost of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Note: Please help with last graph and if anything already done is incorrect!
Tell me why each point deserves to be where it is
1
6- Figure 1 shows the change in the price of butter and the quantity of butter bought and sold due to: None of the options O A decrease in average income levels. An increase in the price of milk. An increase in the price of margarine. 7- Kareem can produce either a combination of 40 doors and 60 windows or a combination of 50 doors and 35 windows. If he now produces 40 doors and 60 windows, what is the opportunity cost of producing an additional 10 units of doors? * O 25 windows O 0.4 windows 35 windows O 2.5 windows
Suppose the economy initially produces 15,000 gallons of drinking water and 450,000 tons of steel, which is represented by point A. The opportunity cost of producing an additional 5,000 gallons of drinking water (that is, moving production to point B) is (72,000, 135,000, 90,000, 54,000, 108,000) tons of steelSuppose, instead, that the economy currently produces 378,000 tons of steel and 20,000 gallons of drinking water, which is represented by point B. Now the opportunity cost of producing an additional 5,000 gallons of drinking water (that is, moving to point C) is (72,000, 135,000, 90,000, 54,000, 108,000) ons of steel.Comparing your answers in the two previous paragraphs, you can see that the opportunity cost of 5,000 additional gallons of drinking water at point B is (Less, Equal, Or Greater Than) the opportunity cost of 5,000 additional gallons of drinking water at point A. This reflects the (Notion that Countries can gain from trade, Law of Increasing Opportunity Costs, Fact…
Refer to FIGURE 1. FIGURE 1 Food LE 80 60 40 20 I 20 I 1 40 60 80 100 110 120 140 160 180 200 Clothing If the economy were operating at point F (inside the PPC) the opportunity cost of producing 20 additional units of food would be 30 units of clothing. O the opportunity cost of acquiring 30 additional units of clothing would be 20 units of food. additional food could be produced at no opportunity cost in terms of sacrificed clothing. the opportunity cost of acquiring 20 additional units of food would be 40 units of clothing. O additional clothing cannot be produced unless there is a technological advance or new resources are discovered.
In a month, Carlos can produce a maximum of either 50 bushels of pears or 25 bushels of apples, or any linear combination in between.Similarly, Debora can produce a maximum of either 40 bushels of pears or 10 bushels of apples, or any linear combination in between. What is the opportunity cost for Carlos to produce one more bushel of apples in terms of pears? One bushel of apples equals bushels of pears.What is the opportunity cost for Debora to produce one more bushel of apples in terms of pears? One bushel of apples equals bushels of pears. What would Debora and Carlos agree to as acceptable terms of trade? bushels of pears per bushel of apples.
Suppose that your family has just decided to adopt a golden retriever named Hailey. You have a monthly budget of $50 that you can choose to spend on either dog treats or other consumption goods. Assume the price of a bag of dog treats is $4 for the first 5 bags, but then it drops to only $3 per bag for each additional bag. All other consumption goods will be treated as a composite good, so you can think of this as simply the cash left over to spend on other items after buying dog treats. On the following graph, use the blue points (circle symbol) to graph your family's budget constraint. Remember to plot from left to right. Line segments will automatically connect the points. OTHER CONSUMPTION (Amount per month) 35 30 25 D 2 10 12 14 10 DOG TREAT BAGS (Bags per month) 18 20 Budget Constraint
CAPITAL GOODS Use the diagram below to answer the questions that follow. M. CONSUMER GOODS (a) What change could cause the PPF to shift from the original curve (HJ) to the new curve (MN)? (b) Under what conditions might an economy be operating at point Z? (c) Why might a government implement a policy to mnove the economy from Point V to Point W? Question 3 F7 PrtSc Insert 88 F10 F11 6 F12 & 9- 7.
A5
4. Problems and Applications Q4 Suppose that there are 10 million workers in Japan and that each of these workers can produce either 2 cars or 20 bushels of wheat in a year. bushels of wheat, and the opportunity cost of producing a bushel of wheat in Japan is The opportunity cost of producing a car in Japan is 201 1/10 cars. Use the blue line (circle symbol) to draw Japan's pr 5 indicate the consumption bundle Japan can achieve 10 Cars (millions) 20 18 16 14 12 10 8 4 2 0 0 1/10 50 20 possibilities frontier (PPF) on the following graph. Then use the black point (plus symbol) to trade if it chooses to consume 15 million cars. 100 150 200 250 300 350 400 Wheat (millions of bushels) PPF + Without Trade With Trade Now suppose that the United States offers to buy 5 million cars from Japan in exchange for 150 million bushels of wheat.
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