Assume Georgia and Alabama each have 100 acres of farmland. The following table gives hypothetical figures for yield per acre in the two states: Oranges Grapefruit Georgia 15 14 Alabama 3 7 a) What is the opportunity cost (in terms of the amount of Grapefruits given up) of producing 30 Oranges in Georgia? Grapefruits b) What is the opportunity cost (in terms of the amount of grapefruits given up) of producing 30 Oranges in Alabama? c) Grapefruits In this exercise, you will find actual points on the combined Production Possibilities Frontier (PPF) of the two states. For each of the following values of one good, calculate the maximum amount of the other good that the two countries could produce working together. Oranges Grapefruits 280 450 1560 770 In the space below, draw the graph of the COMBINED Production Possibilities Frontier. Put Oranges on the Vertical axis, and Grapefruits on the Horizontal axis. Make sure your graph is accurate and carefully labeled in order to receive full credit. How do you solve part C?
Assume Georgia and Alabama each have 100 acres of farmland. The following table gives hypothetical figures for yield per acre in the two states: Oranges Grapefruit Georgia 15 14 Alabama 3 7 a) What is the opportunity cost (in terms of the amount of Grapefruits given up) of producing 30 Oranges in Georgia? Grapefruits b) What is the opportunity cost (in terms of the amount of grapefruits given up) of producing 30 Oranges in Alabama? c) Grapefruits In this exercise, you will find actual points on the combined Production Possibilities Frontier (PPF) of the two states. For each of the following values of one good, calculate the maximum amount of the other good that the two countries could produce working together. Oranges Grapefruits 280 450 1560 770 In the space below, draw the graph of the COMBINED Production Possibilities Frontier. Put Oranges on the Vertical axis, and Grapefruits on the Horizontal axis. Make sure your graph is accurate and carefully labeled in order to receive full credit. How do you solve part C?
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter10: Financing And Producing Goods
Section: Chapter Questions
Problem 5AA
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