Suppose that Bob and John each are going to spend the weekend picking apples and peppers, the graphs below represent all the possiblecombinations that each can pick.BobJohnApplesApples2012Peppers15PeppersIf Bob and John are producing jointly, what is the opportunity cost of peppers if the two of them currently have 5 peppers?a. 1/3b. 3/4c. 3d. 4/3

Suppose that Bob and John each are going to spend the weekend picking apples and peppers, B will…

Answered: Suppose that Bob and John each are…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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On the following graph, use the blue line (circle symbol) to plot Nick's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Rosa's PPF. Nick and Rosa are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye on the rest. Corn Rye Nick 12 3 Rosa 15 5 (ROSA OR NICK) has an absolute advantage in the production of corn, and (ROSA OR NICK) has an absolute advantage in the production of rye. Nick's opportunity cost of producing 1 bushel of rye is__________bushels of corn, whereas Rosa's opportunity cost of producing 1 bushel of rye is_________ bushels of corn. Because Nick has a(HIGHER OR LOWER) opportunity cost of producing rye than Rosa, (NICK OR ROSA) has a comparative advantage in the…
Two neighboring island nations, Seychelles and Mauritius, produce iPad's, coffee, or a combination of both. Suppose that they each have 4 million labor hours available per week for production. The following table gives the amount of each product that can be produced using one hour of labor: Country Mauritius Seychelles Mauritius' opportunity cost of produing 1 iPad is iPads (per hour of labor) 12 of coffee. Therefore, 8 Initially, suppose Mauritius uses 1 million hours per week to produce iPads and 3 million hours per week to produce coffee, while Seycheles uses 3 million hours of labor per week to produce iPads and 1 million hours per week to produce coffee. Consequently, Mauritius produces 12 million iPads and 72 million pounds of coffee, and Seychelles produces 24 million iPads and 32 million pounds of coffee. Assume there are no other countries willing to trade with them. So, if Mauritius and Seychelles don't trade with each other, they can only consume what they can produce using…
Debra can make either 12 cakes or 16 cookies in 4 hours. Sam can make either 6 cakes or 12 cookies in 4 hours. a. Who has an absolute advantage at producing cakes and who has an absolute advantage at producing cookies? Briefly explain your answers. b. State Debra's and Sam's opportunity costs of producing one cake and one cookie. Draw and place your answer in a table which looks something like this: Cake Cookie Debra Sam
Mountain Mack and Big Lake Bob spend their time carving fishing lures and duck decoys. The table below shows their production possibilities schedules, which describe various combinations of fishing lures and duck decoys they each can carve efficiently in a week. Production Possibilities Schedules Mountain Mack Big Lake Bob Fishing Lures Duck Decoys Fishing Lures Duck Decoys 8 9 8 4 16 50 40 30 20 10 e 24 32 40 140 115 90 65 40 0 50 fishing lures and 40 duck decoys 140 fishing lures and 20 duck decoys a. If Mountain Mack splits his week evenly between carving fishing lures and duck decoys, what is the maximum number of fishing lures and duck decoys could he corve? 25 fishing lures and 20 duck decoys 20 fishing lures and 25 duck decoys 12 16 20 70 fishing lures and 10 duck decoys 10 fishing lures and 70 duck decoys 20 fishing lures and 140 duck decoys 140 fishing lures and 20 duck decoys b. If Big Lake Bob splits his week evenly between carving fishing lures and duck decoys, what is the…
Suppose that an economy produces only 2 goods, beer and pizza. Show a typical production possibilities frontier for this country and use it to define and explain the opportunity cost concept and the concept of increasing opportunity costs. If a technology was invented that made the production of beer much more efficient but had no effect on the production of pizza how would the production possibilities frontier change (show it). While all points on the production possibilities curves maximize production, which point maximizes satisfaction?With reference to a diagram, show and explain how a market, left on its own, will tend toward an equilibrium in which there is neither a surplus nor a shortage of the product.What condition must be met in order to conclude that an economy is maximizing social well-being? Do the equilibriums given by individual markets necessarily lead to the maximization of social well-being (that is, if demand is equal to supply, can you conclude that well-being is…
Suppose Liam's Automotive, a repair shop: offers two items: oil changes and tires. With all employees working diligently, the shop can produce these combinations each hour. Type of Product: Production Alternatives A B C D E Oil Changes 0 10 20 30 40 Tires. 80 60 40 35 0 Calculate the opportunity costs of moving from one point to each of the others (This is not a calculation provided in the text: What's the tradeoff?): Provide the answers after showing all work, and explain if theses costs are constant. What would it mean if the shop was actually doing 15 Oil Changes and 35 Tires? What would it mean if the shop was actually doing 35 Oil Changes and 35 tires?
Garmin is a technology company that specialises in GPS technology for automotive, aviation, marine, outdoor, and sport activities. Assume they have resources that they want to allocate between the production of GPS smartwatches and fitness trackers.With reference to this:1.1 Explain how Garmin can use a production possibilities frontier to illustrate the various combinations of output of smartwatches and fitness trackers. 1.2 Assume that Garmin has obtained a new technique to produce fitness trackers more efficiently. Critically discuss how the PPF can be used to illustrate that. 1.3 Justify the importance of price elasticity of demand to pricing managers of Garmin. 1.4 With the aid of examples applicable to Garmin, explain the difference between explicit and implicit costs.1.5 Garmin smartwatches may be considered part of an oligopolistic market structure with its main competitors being Fitbit, Huawei, Samsung, and Xiaomi. Propose the type of demand curve that would be faced by Garmin
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5. Opportunity cost and production possibilities Van is a skilled toy maker who is able to produce both trucks and balls. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. Hours Producing Produced Choice (Trucks) (Balls) (Trucks) (Balls) A 8 4 B 6 2 3 8 4 4 2 13 D 2 6 1 15 E 8 16 On the following graph, use the blue points (circle symbol) to plot Van's initial production possibilities frontier (PPF).
• Use the data from the table below to construct correctly labeled side-by-side graphs showing the production possibilities curve for Theo and Marlee. Assume that both have constant opportunity costs: Theo Marlee Bananas 20 50 Rice (in lbs.) 30 50 • Suppose that Theo and Marlee each spent half of their day making each good; Theo makes 10 bananas and 15 pounds of rice and Marlee makes 25 bananas and 25 pounds of rice. Show this point on the production possibilities curve of each person, and label that point X on your graph above. What is the total production of each good? • Suppose that Theo and Marlee agree to exchange 4 bananas for 5 pounds of rice. Under this agreement, Theo sells 15 pounds of his 30 pounds of rice to Marlee, in exchange for 12 of her 50 bananas. Show the new consumption points on the graph above for each person, and label these new consumption points Z.
Refer to the production possibility frontiers for two friends Frodo and Sam who can both produce Ice creams and Jelly beans. Frodo's maximum production of Ice creams is 500 with no Jelly beans, or 2,000 Jelly beans with no Ice creams. Sam's maximum production of Ice creams is 600 with no Jelly beans, or 1,200 Jelly beans with no Ice creams. ICE CREAMS ICE CREAMS 600 500 1200 JELLY BEANS 2000 JELLY BEANS Frodo' PPF Sam's PPF Answer briefly these TWO questions in the box space provided below. Part A: Assuming efficient production without trade, derive the maximum amount of Jelly beans that can be produced by Sam along with 300 Ice creams. Describe your steps in detail. Part B: Assume that Frodo and Sam agree to specialize in production and trade between themselves. Frodo offers 1,000 Jelly beans to Sam in exchange for 300 lce creams. Would Sam agree to this trade?

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