Homework Help is Here – Start Your Trial Now!
Business
Economics
p. How would the immigration of 10 munchkins, i.e., 10 units of labor, affect the PPF equation? Show graphically on the same diagram and explain. c. What is the marginal cost of x when x = 20? What is the marginal cost of y when x = 20?

p. How would the immigration of 10 munchkins, i.e., 10 units of labor, affect the PPF equation? Show graphically on the same diagram and explain. c. What is the marginal cost of x when x = 20? What is the marginal cost of y when x = 20?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
100%

Solution sent me all part

b. How would the immigration of 10 munchkins, i.e., 10 units of labor, affect the PPF equation? Show graphically on the same diagram and explain. c. What is the marginal cost of x when x = 20? What is the marginal cost of y when x = 20?
Transcribed Image Text:b. How would the immigration of 10 munchkins, i.e., 10 units of labor, affect the PPF equation? Show graphically on the same diagram and explain. c. What is the marginal cost of x when x = 20? What is the marginal cost of y when x = 20?
2-4. The land of Oz produces dreams (denoted by x) and wishes (denoted by y). The production possibilities function in the current year is given by: y = 2L²+ 3K²-0.4x² where K is units of capital, and L is units of labor. Assume the current stock of resources is L= 20 and K = 10. The marginal cost of x is given by the slope of the production possibilities frontier, PPF, a given point and is a function of x. Notice the slope of this nonlinear function is not constant. In this case, the slope, i'.y/i'.x, equals -0.8x (or, the first derivative dy/dx equals - 0.8x.) a. Draw Oz's PPF and state whether resources are perfectly substitutable or not. Explain your answer.
Transcribed Image Text:2-4. The land of Oz produces dreams (denoted by x) and wishes (denoted by y). The production possibilities function in the current year is given by: y = 2L²+ 3K²-0.4x² where K is units of capital, and L is units of labor. Assume the current stock of resources is L= 20 and K = 10. The marginal cost of x is given by the slope of the production possibilities frontier, PPF, a given point and is a function of x. Notice the slope of this nonlinear function is not constant. In this case, the slope, i'.y/i'.x, equals -0.8x (or, the first derivative dy/dx equals - 0.8x.) a. Draw Oz's PPF and state whether resources are perfectly substitutable or not. Explain your answer.
Expert Solution
steps

Step by step

Solved in 3 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Production Possibility Frontier
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.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS