Orange(tons) Apple(tons) A 1400 0 B 1100 450 C 900 900 D 600 1200 E 250 1600 F 0 2000 a. Plot the production possibilities curve for the production of orange and apple. Put orange on the horizontal axis. b. What is the opportunity cost of increasing the production of orange from 0 to 250? From 900 to 1100? c. Given this production possibilities curve, is producing 900 orange and 1200 apple possible? d. Is producing 250 orange and 1200 apple? Is it efficient?
Orange(tons) Apple(tons)
A 1400 0
B 1100 450
C 900 900
D 600 1200
E 250 1600
F 0 2000
a. Plot the
b. What is the
c. Given this production possibilities curve, is producing 900 orange and 1200 apple possible?
d. Is producing 250 orange and 1200 apple? Is it efficient?
2) What is the connection between elasticity and total revenue?
3) State whether each of the following events will result in a movement along the
a) The price of McDonald’s Big Mac hamburger decreases.
b) Because of a shortage of potatoes, the price of French fries increases.
a) Mike owns the Suprise Chocolate store. He charges $4 per kg for his hand made chocolate. You, the economist, have calculated the
b) A firm increases its price from $8 to $10 and sees demand for the product fall by 25%. What would the
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