**Step 2: Drawing a Modified Production Possibility Frontier (PPF)**1. **Initial Setup:** - Create a new graph featuring the Production Possibility Frontier (PPF) of the economy. Ensure that the axes are properly labeled. Typically, the x-axis and y-axis will denote the quantities of two different goods produced by the economy.2. **Highlighting Technological Change:** - Use a different colored pen, pencil, or highlighter to illustrate how the PPF shifts when there is a technological advancement that specifically enhances the production of batteries. 3. **Understanding the Shift:** - A technological improvement in battery production implies that the economy can produce more batteries without reducing the production of blueberries. Hence, the part of the PPF related to batteries will shift outward. - Remember, the intercept for blueberries will remain unchanged, indicating that their production capacity is unaffected by this technological change.4. **Labeling:** - Clearly label the new PPF to distinguish it from the original one. This helps in visualizing how technology affects production possibilities.This step-by-step guide facilitates understanding how specific technological advancements can impact the economy's production capabilities, depicted through shifts in the PPF.

The production possibility frontier represents the total production of the goods and services in an…

Step 2. Draw another PPF of the economy with the axes labeled. Grab another color pen/pencil/highlighter and show how the PPF would change if there was a technological change that increased the production of batteries only. (Hint: The intercept for blueberries will not change.) Clearly label the new PPF.

Step 2. Draw another PPF of the economy with the axes labeled. Grab another color pen/pencil/highlighter and show how the PPF would change if there was a technological change that increased the production of batteries only. (Hint: The intercept for blueberries will not change.) Clearly label the new PPF.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Give only typing answer with explanation and conclusion PPC is concave to the point of origin because as we move along the curve, slope of PPC keep on decreasing. True or false?
Meanwhile, in the country of Portugal, wool and wine can also be produced according to a linear PPF. However, when all resources are devoted to production of wine, Portugal can produce 100 barrels, but when all resources are devoted to wool production, portugal can produce 50 bushels. What are the opportunity costs in Portugal of producing a barrel of wine?
microeconomics help.
The PPF curve shows a curved negative relationship between two goods this means that an increase in the production of one good requires which of the following
Hi! I am currently stuck on this question: Suppose there is an improvement in medical technology that enables more healthcare to be provided with the same amount of resources. How would this affect the production possibilities curve and, in particular, how would it affect the opportunity cost of education? I am confused as to why education increases. I know that the medical technology would increase the PPF because of the improvement, but wouldnt that decrease the opportunity cost of education because there is more technology? Thanks!
Use the PPF to answer the following questions: (a) At point F, how many sweaters are being produced? How many hard drives? (b) Label points A-H as either efficient, inefficient, or unattainable. (c) Can we determine if point F is productively efficient? If so, is it productively efficient? (d) Can we determine if point F is allocatively efficient? If so, is it allocatively efficient?
Assume there are only two goods in the world: pizza and electric fans. Draw a production possibility frontier (PPF) illustrating the trade-off between the two (specific numbers are not needed – we are only looking for the basic shape of the PPF). On the same graph, draw new frontiers showing 1) what happens if a major plague reduced worldwide population significantly, and 2) if a machine is invented which doubles the number of fans that can be made in a day (but is irrelevant in the production of pizza).
Between a straight line PPF and a concave PPF, which one is more realistic? Why? Defend your answer. (please solve it and make it plagarism free. donot copy paste)
When technology of production improves what happens to the production possibilities frontier? does not affect the PPF. shifts the PPF inward, toward the origin. shifts the PPF outward, away from the origin. rotates the PPF outward, making it less steep.
Suppose a small economy produces only two goods: apples and oranges. The production possibilities frontier (PPF) for this economy is given by the following equation: PPF: 5A + 3O = 60, where A represents the quantity of apples produced and O represents the quantity of oranges produced. Calculate the opportunity cost of producing one additional apple.