Assume our standard model. It takes Andreas 60 minutes to make a unit of beer and 15 minutes to make a unit of chips. Assuming he is on his PPF, what is his opportunity cost (in chips) of making 1 more beer?
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Assume our standard model. It takes Andreas 60 minutes to make a unit of beer and 15 minutes to make a unit of chips. Assuming he is on his
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- Hacmillan Leaming Christine and Paul are deciding how to split their time between writing music and lyrics for their new album. Their PPF's for 72 h of work are shown. Christine and Paul have to write music for 8 songs and lyrics for 12 songs (4 songs already have music). When they are done, they can go to a private island and relax from all their hard work. It is possible that they will use more than 72 h. Once they start writing lyrics and music, assuming their hired help packs for them and their plane is waiting outside their door, in how many hours can they board the plane to their relaxing island getaway? Christine will write music for Paul will write music for Christine will write lyrics for Paul will write lyrics for h songs. songs. songs. songs. Music written (in # of songs) 1 0 Paul's PPF 1 Christine's PPF 2 Lyrics written (in # of songs))17. Opportunity cost and production possibilities Andrew is a talented artist who sells hand-crafted goods on his website. Andrew currently crafts and sells both picture frames and cutting boards. He spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of his time is spent on each good. DARDS Choice (Picture frames) A B с D E 30 25 8 6 4 20 Hours Crafting 2 0 (Cutting boards) (Picture frames) 0 2 4 6 8 4 3 2 Produced 1 0 On the following graph, use the blue points (circle symbol) to plot Andrew's initial production possibilities frontier (PPF). (Cutting boards) Initial PPF New PPF 0 11 16 19 ? 20The table shows the output of bikes and skateboards for Luke and Han (the end points of their respective PPCs). They can produce either or some linear combination of both Bikes (B) and Skateboards (S). With this information, select the choice that is a true statement. a b Question 9 C Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. d 1/11 answered ii Luke has the comparative advantage in producing Bikes and Skateboards. Han has the comparative advantage in producing Bikes and Skateboards. Luke Han Question 10 Answers ar Bikes 50 40 Skateboard Luke has the comparative advantage in Bikes and Han has the comparative advantage in producing Skateboards. Luke has the comparative advantage in Skateboards and Han has the comparative advantage in producing Bikes. 70 64
- y Tools ips ips Homework (Ch 02) 2. Opportunity cost and production possibilities Sam is a skilled toy maker who is able to produce both cars 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. Choice PUZZLES A B C D E 30 25 20 15 Hours Producing (Cars) (Puzzles) 8 0 2 10 6 4 2 0 4 6 8 (Cars) 4 3 2 On the following graph, use the blue points (circle symbol) to plot Sam's initial production possibilities frontier (PPF). NO 1 Produced 0 (Puzzles) 0 10 16 19 20 Initial PPF Your Mac will sleep s into a power outlet. New PPF *Assume the following: (1) three people go to a restaurant, (2) each person orders a soda for P2 and the group of three orders a large pizza to share for a price of P12 and (3) a fourth person joins the group and orders one soda and is invited to share in eating the pizza. Which of the following statements is false? a. The cost of the fourth person’s soda will be P2. b. The total cost of the four sodas consumed by the group is P 8. c. When the fourth person joined the group the total cost of the large pizza increased to P 16. d. When the fourth person joined the group the average pizza cost per person dropped to P3.A company that produces brass hardware for doors has the ability to produce up to 6,500 hinges per week but then is unable to produce doorknobs. Or it can produce up to 650 doorknobs per week but then is unable to produce any hinges. In the graph below, use the straight-line tool to draw the company's production possibilities frontier, where the quantities are per week (do not use the point tool to plot endpoints). Then use the point tool to plot a point to indicate the company's maximum output where it is producing exactly three times as many hinges as doorknobs. To refer to the graphing tutorial for this question type, please click here. Quartity ofinge 000 7500 000 4000 000 100 1000 Quartity of doorknot
- A farmer produces both green beans and corn. The farmer must give up 31 bushels of corn to get 7 more bushels of green beans. If the rate of transformation (or tradeoff) between the two goods is constant, then the opportunity cost of 1 bushel of green beans in terms of bushel of corn is? The result should be given to two decimal places in absolute value (e.g if the result is 3.678, write 3.68, if the result is -3, write 3.00.) Your Answer:Tom and Jerry have two tasks to do all day: Set traps and build bombs. If Tom spends all day setting traps, he will have set 16 traps. If he instead devotes his days to building bombs, Tom will build four bombs. If Jerry spends his day setting traps, he will set 14 traps; if he spends the day building bombs, he will build 7 bombs. After looking at the production possibilities for Both Tom and Jerry, we can conclude that: -Jerry has the comparative advantage in trap production -Tom has the comparative advantage in trap production -Tom has the comparative advantage in bomb production -No comparative advantage existThe graph below is Mendork's production possibility curve for the only two goods that it produces-quirks and quarks. Quantity of Quarks 800 700 600 500 400 300 200 100 A 2 4 6 8 10 12 14 16 18 20 Quantity of Quirks Select one: Refer to the graph above to answer this question. If new technology increased the output of quirks by 50%, how many quirks could be produced if 700 quarks were produced? B A. 9 quirks. B. 18 quirks. C. 10 quirks. D. 20 quirks. E. No quirks.
- A farmer can produce 10,000 pears (X) on his one-acre farmland, and when he uses the same land for apple cultivation, a total of 5,000 apples (Y) can be produced. He realizes that with the introduction of a new fertilizer, he can increase the maximum production of apples to 7,000. The maximum production of pears, however, remains unchanged. Hence, his new PPF equation is?Assume our standard model. Both Andreas and Katya have 5 hours. In an hour, Andreas can knit 5 scarves or 4 hats. In an hour, Katya can knit 6 scarves or 6 hats. If they are efficiently producing 37 scarves, how many hats are they making?Matt and Lin are two producers and consumers for lamps and beds. Each of them works 40 hours in a week. Hours required for Matt to produce one unit of lamps or beds are 1 hours or 10 hours, respectively. Hours required for Lin to produce one unit of lamps or beds are 2 hours or 8 hours, respectively. Assuming their PPFs are straight lines. Calculate the correct options that complete the following statements on Matt's PPF. A) If Matt produces only lamps, they can produce ? unit(s) of lamps. If Matt produces only beds, they can produce ? unit(s) of beds B) Calculate the correct options that complete the following statements on Lin's PPF. If Lin produces only lamps, they can produce unit(s) of lamps. If Lin produces only beds, they can produce unit(s) of beds. C) What is the marginal opportunity cost of producing an extra unit of lamps for Matt? An extra unit of lamps costs unit(s) of beds. D) What is the marginal opportunity cost of producing an extra unit of lamps for Lin?…