Suppose that society could produce the following combinations of pizzas and books: Alternative Quantity of pizzas Quantity of books A 50 В 40 10 30 18 20 24 10 28 30 Using graph paper (or a computer program), draw the PPF for pizza and books, being as exact and neat as possible. (Put books on the horizontal axis. Assume that the points above can be connected to define a complete curve.) b. Is it possible or efficient for this society to produce 25 pizzas and 25 books? c. Is it possible or efficient for this society to produce 42 pizzas and 1 book? d. If society is currently producing Alternative B, then the opportunity cost of moving to Alternative A (and getting 10 more pizzas) is, e. Is the opportunity cost of producing pizzas higher or lower moving from Alternative F to E than moving from Alternative B to A? Why is this likely to be so? f. Suppose that the technologies used in producing both pizzas and books improve. Draw one possible new PPF in the graph above that represents the results of this change. Indi- cate the direction of the change that occurs with an arrow. a. books.

Suppose that society could produce the following combinations of pizzas and books: Alternative Quantity of pizzas Quantity of books A 50 В 40 10 30 18 20 24 10 28 30 Using graph paper (or a computer program), draw the PPF for pizza and books, being as exact and neat as possible. (Put books on the horizontal axis. Assume that the points above can be connected to define a complete curve.) b. Is it possible or efficient for this society to produce 25 pizzas and 25 books? c. Is it possible or efficient for this society to produce 42 pizzas and 1 book? d. If society is currently producing Alternative B, then the opportunity cost of moving to Alternative A (and getting 10 more pizzas) is, e. Is the opportunity cost of producing pizzas higher or lower moving from Alternative F to E than moving from Alternative B to A? Why is this likely to be so? f. Suppose that the technologies used in producing both pizzas and books improve. Draw one possible new PPF in the graph above that represents the results of this change. Indi- cate the direction of the change that occurs with an arrow. a. books.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Use the PPF to answer the following question: 1. Can we determine if Point F is allocatively efficient?
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