Assume there is a two person economy, where they have only fish and mangos. Susan can pick 18 mangos per day or catch 6 fish per day. Tom can pick 6 mangos per day or catch 10 fish. Each work 5 hours per day. a. Draw their individual production possibility curves (assuming constant marginal returns). b. Draw their group production possibility curve. (Hint: find 3 points- 2 axis points and the specialization point). c. What is one combination that would be considered an inefficient level of production in this economy. d. What is one combination that would be considered an unattainable level of production in this economy.

Assume there is a two person economy, where they have only fish and mangos. Susan can pick 18 mangos per day or catch 6 fish per day. Tom can pick 6 mangos per day or catch 10 fish. Each work 5 hours per day. a. Draw their individual production possibility curves (assuming constant marginal returns). b. Draw their group production possibility curve. (Hint: find 3 points- 2 axis points and the specialization point). c. What is one combination that would be considered an inefficient level of production in this economy. d. What is one combination that would be considered an unattainable level of production in this economy.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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