Assume that it takes 2 hours of labor to produce a unit of good X and 6 hours of labor to produce a unit of good Y. What is the opportunity cost of producing 2 units of good Y?4 units of good X2 units of good X1/6 unit of good X6 units of good XZero opportunity cost, if all the labor is currently employed

The next best alternative is commonly referred to as opportunity cost. It's also known as the…

Assume that it takes 2 hours of labor to produce a unit of good X and 6 hours of labor to produce a unit of good Y. What is the opportunity cost of producing 2 units of good 4 units of good X 2 units of good X 1/6 unit of good X

Assume that it takes 2 hours of labor to produce a unit of good X and 6 hours of labor to produce a unit of good Y. What is the opportunity cost of producing 2 units of good 4 units of good X 2 units of good X 1/6 unit of good X

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Sue Tom Good A 10 4 Select one: Good B 15 5 As shown in the table above, Sue and Tom each can…

A: Sue can produce 10 units of Good A, if all resources are used in the production of Good A.…

Q: Person 1 can allocate her 8-hour a day between the production of two goods. A and B. Each hour…

A: As per given details:- Production level(each hour) Goods A Goods B Person 1 4 2 Person 2…

Q: differences between goods and services?? for economics

A: In economics, products and services are sometimes used interchangeably. Customers are supplied these…

Q: Stephen and Rebecca both enjoy drinking coffee. The marginal benefit that each places on the coffee…

A: Marginal benefit is the maximum amount of money a consumer is willing to pay for an additional good…

Q: Question. The title of this article is 'English football's Premier League will take a financial hit…

A: Revenue is the income generated by any business by selling a good or service. It is a major…

Q: assume that you happen to see a ripe mango fallen from a tree lying along a public roadside. if you…

A: Public Goods are defined as the goods on which no single entity can claim ownership. This is because…

Q: Two countries (Home and Foreign) use labor to produce two goods: Cloth and Wheat. The number of…

A: a) aLc, aLw, aLc*, aLw* are the unit labor required for the production of respective goods in home…

Q: Popcorn at the movies is $6 a bag. Candy at the movies is $2 a box. The opportunity boxes of candy.…

A: Opportunity cost is one of the effective economic measures used in different aspects, such as in the…

Q: Why do problems related to allocation of resources in an economy arise?. Explain.

A: The process of choosing how to divide limited resources, such as land, labor, capital, and natural…

Q: Person 1 can allocate her 8-hour day between the production of two goods: A and B. Each hour devoted…

A: c) Move inwards on Good B axis only The maximum units of good B that can be produced will decrease…

Q: Home has 1200 units of labor available. There can produce two goods which watermelon and kiwi. The…

A: a) When all the labor only produce watermelon, how many units of watermelon can be produce?…

Q: e first image I need help with the graph and the second image to solve the proble

A: Given the production possibilities frontier of two goods : Computers and Leather jackets Therefore…

Q: Which principle states that "individuals facing limited resources must make choices, and each choice…

A: This principle reflects the fundamental concept in economics that resources are limited, and…

Q: Person 1 can allocate her 8-hour day between the production of two goods. A and B. Each hour devoted…

A: Answer : g. Move inwards on Good B axis only

Q: Consider the following figure that illustrates production possibilities frontier (PPF) for colas and…

A: Consider the below points: *Any point that exists on the PPF exhibits efficient production. *Any…

Q: Shifts in production possibilities Suppose South Africa produces two types of goods:…

A: Production-possibility frontier (PPF):Production–possibility frontier or the PPF curve shows the…

Q: An apartment complex included a fixed price of water in the monthly rent. One day, the city decided…

A: At its most fundamental level, economics attempts to explain how and why we make the purchasing…

Q: In economics, the cost of producing a good: a) is maximum value of other goods that could have been…

A: In economics, the cost of producing a good encompasses the value of resources and inputs consumed…

Q: calculate the opportunity cost of increasing the number of mp3 players produced by 100 between 0 and…

A: The concept of opportunity cost can be clearly defined by the use of a production possibility…

Q: Consider a production possibilities curve. The origin and two points A and B may be connected by one…

A: Scarcity is an economic concept that relates to the reality that there is a finite number of human…

Q: Caln be allocated in the production of either good freely, but the other factor is specific. For…

A: Labor: It refers to the people who work at the lower level in the factory or in the firm. The labor…

Q: Suppose the economy has 100 units of labor (L) and 100 units of capital (K), and it chooses to…

A: X = LX0.25KX0.25 Y = 2LY0.25KY0.25 L=100, K=100

Q: What is the term for the economic principle. that individuals try to get the greatest benefit from a…

A: The issue includes recognizing the term that portrays the monetary rule where people mean to augment…

Q: Which of the following statements is considered a market-value definition? a) We make railroads. b)…

A: Answer:- Market value definition is all about the value that a particular product or service is…

Q: Question 1: Explain why the following statement should hold: Əv (p, w) apk = 0 for any good k only…

A: Here v is a function of price vector and consumption bundle of good k and i. v function can be…

Q: Which of the following choices correctly illustrates how changes in opportunity costs affect supply?…

A: At the marketplace, opportunity cost is the cost when an individual chooses an alternative with some…

Q: A firm operates two plants, Plant A and B. Both plants can produce good x and good y. Each plant can…

A: Given, Each plant works up-to 250 days in a year Plant A can produce= 10 units of good X or 5 units…

Q: A firm operates two plants, Plant A and B. Both plants can produce good x and good y. Each plant can…

A: It has been provided that, For plant A: MCx = 10 MCy = 5 For plant B: MCx = 5 MCy = 4

Q: QUESTION 38 38. Which of the following statements referring to economic jargon is TRUE? a "free…

A: Economic jargons refers to the specific terms used by the economists to explain specific economic…

Q: Define marginal benefit. Show the efficient point using a marginal cost/benefit diagram

A: Marginal benefit is defined as additional benefit derived from the consumption of one more units of…

Q: mat shows Dimies Good X and Good Y. Type of Goods Production Possibilities A B D. E 2 4. 6 8 Y 30 27…

A: Since, you have asked multiple questions with multiple parts, we will be answering the first three…

Q: • Refer to fig. 2.1 in the text. 1. Identify the optimal level of production of this good. 2. In…

A: 1. Optimal level of production is determined at the point where, MB=MC Thus, the condition for the…

Q: Identify the point or points for which the following is true: 24 units of beer and 7 units of pizza…

A: When two goods are being produced (like the beer and pizza), a Production Possibility Frontier curve…

Q: Suppose we have 2 consumers: Peter and Jane trading two goods: rice and meat. Assume there is a…

A: The general equilibrium refers to the state where all the markets for different goods and services…

Q: Define opportunity cost. What is your opportunity cost for attending a class at 11:00 am? How does…

A: The potential gains that a person, investor, or organisation loses out on when choosing one choice…

Q: Figure: Comparative Advantage II Eastland and Westland produce only two goods, boxes of peaches and…

A: Opportunity cost is the units of one good that have to be foregone to produce an additional unit of…

Q: What is the relationship between scarcity and shortage, as economists use the terms? O Scarcity…

A: Scarcity means there are limited resources available in the economy that are not sufficient to…

Q: 400 500 Wonderland produces and consumes two goods, pumpkins and sweet potatoes, by using two…

A: A production possibilities frontier (PPF) is a graphical depiction of all the possible combinations…

Q: A tropical storm creates a shortage of the items . how would this affect the production…

A: In an economy, the production possibility curve is used by represent the connection between total…

Question

Assume that it takes 2 hours of labor to produce a unit of good X and 6 hours of labor to produce a unit of good Y. What is the opportunity cost of producing 2 units of good Y?
4 units of good X
2 units of good X
1/6 unit of good X
6 units of good X
Zero opportunity cost, if all the labor is currently employed

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Consider the production possibility frontier (PPF) illustrated in the figure to the right. If Px = 50.00 and Py = 25.00, how many units of good X and good Y will be produced? The firm should produce units of good X and numeric responses using integers.) units of good Y. (Enter ▪▪▪▪▪ Good Y 90- 80- 70- 60- 50- 40- 30- 20- 10- 0 10 20 30 40 50 Good X 60 70 PPF 80 90 Q
1. Use the graph below to calculate Peter’s opportunity cost of an hour of tennis when he increases the time he plays tennis from: a) 4 to 6 hours a week. b) 6 to 8 hours a week. c) describe the relationship between the time Peter spends playing tennis and the opportunity cost of an hour of tennis.
Choose from the list provided, the correct answer: a. Calculate the opportunity cost for Good B for Person 2 b. Calculate the opportunity cost for Good A for Person 1
Farmer Jones and Farmer Smith graze their cattle on the same field. If there are 20 cows grazing in the field each cow produces $4000 of milk. If there are more cows in the field, then each cow produces can eat less grass and the milk production falls. With 30 cows on the field each produces $3000 of milk, with 40 cows each produces $2000 of milk . Cows cost $1000 a piece. Assume that Farmer Jones and farmer Smith can buy either 10 cows or 20 cows, find out the Dominant Strategy of Farmer Jones and express the same in formal language. I want to see all the steps.
The graph to the right depicts an economy, Home, which produces flowers and soybeans. Its production possibilities frontier is shown as TT. One of Home's isovalue lines is also shown as VV. Ps = $2 ... the price of a unit of soybeans Q = 5 ... the number of units of soybeans currently being produced at point X P $2... the price of a unit of flowers = Q₁ = 5... the number of units of flowers currently being produced at point X. What is the significance of Home operating at point X on the graph to the right? A. It maximizes Home's value of output. B. It minimizes Home's total cost of production. OC. It maximizes Home's profit. OD. It maximizes the utility of Home consumers. C Production of soybeans, Qs 16- 15- 14- 13- 12- 11- 10- 7- Home Production 6- ☑ 5- 4- 3- 2- 1- 0- TT ⚫JVV 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Flower production, Qf
Why is the equality between the marginal benefit and marginal cost of an action an equilibrium condition in economics?
Suppose your first-preferred choice for lunch is a sandwich, your second-preferred choice for lunch is a taco and your third-preferred choice for lunch is a slice of pizza. The opportunity cost for your first choice is a taco and a slice of pizza a sandwich a slice of pizza a taco
Consider your decision to study this final exam. Which of the four core principles of economics applies to the notion that the benefit of studying one more hour might not be worth the cost of studying one more hour? Select one: a. Interdependence principle b. Marginal principle c. Cost-benefit principle d. Opportunity cost principle
person 1 can allocate her 8 hour day between the production of two goods: A and B. Each hour devoted to good B yeilds 2units . whereas each hour devoted to good A produces 4 units. state whether 9 units of good B and 12 units of good A are unattainable, efficient, or inefficient.(state all that applies) select one or more attainable inefficient efficient unattainable
Economics is about the production of goods and services, which requires the allocation of: a. benefits b. consumption c. resources d. utility
Suppose the economy has 100 units of labor (L) and 100 units of capital (K), and it chooses to allocate three times more labor and capital in the production of good X than in good Y. Suppose also that the production of goods X and Y are represented by the following functions: X = Lx0.25Kx0.25 Y = 2LY0.25KY0.25 Compute for Lx, Ly, Kx and Ky Calculate the MRTSLK of each firm Is this allocation efficient? How so? How many units of X and Y will be produced?
How is the market price of a good determined? When the market for a product is in equilibrium, how will consumers value an additional unit compared to the opportunity cost of producing that unit? Why is this important?