Glass 100- Sand (K) 0 Labor(L) 100 0 Concrete 0 0 Labor(L) 100 Sand (K) 100 Suppose that the Italian economy produces two goods: Glass and Concrete. Both goods are produced using Workers (L) and Sand (K). The graphs below show allocations of L. and K to the two industries. Solid Orange curves represent Glass isoquants, while dotted Blue curves represent Concrete isoquants. A) Sketch the production contract curve for this economy. Explain what this represents in words. B) Draw an approximation of the production possibilities frontier for this economy. Explain any curvature or kinks (or lack thereof).
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- Consider an economy that produces two goods , X and Y. Use a production box diagram to construct the production possibility frontier for these two goods. Also indicate the optimal consumption point and price ratio that will prevail. Suppose now that technical progress causes the X isoquants to shift towards the origin. How will this affect the production possibility frontier, the optimal consumption point and equilibrium price ratio for X and YClass Activity •Choice land has 250 workers and produces only two goods, X and Y. Labouris the only factor of production, but some workers are better suited to producing X than Y (and vice versa). The Table below shows the maximum levels of output of each good possible from various levels of labout input a)Draw the production possibilities boundary on a scale diagram, with the production of X on the horizontal axis and the production of Y on the vertical axis. b)If the economy is producing 20 units of X and 800 units of Y, what is the opportunity cost of producing an extra 10 units of XHeckscher-Ohlin: Consider an economy with two goods (cornand potatoes), both produced using capital and labor. Both factors can freely move across sectors. The technologies for the two sectors are given by the following Cobb-Douglas production functions:
- Consider Robinson Crusoe who lives alone on the island. He can produce two goods eggs (good X) and yoghurt (good Y). The only input to the production of these goods is his labour. He works 12 hours per day and sleeps for 12 hours - there is no time to play- this is a very grim economy... Let Lx denote the amount of time devoted to producing eggs (good X) and Ly denote the amount of time devoted to producing yoghurt (good Y). Eggs are produced using the production technology X = 5√Lx and yoghurt is produced using the production technology Y = 4Ly. His preferences for eggs and yoghurt are described by the indifference curves with marginal rate of substitution MRSxy = Y/X. a) What is the production possibility frontier (PPF) for this economy? Hint: find how much labour is required to produce x eggs and y yoghurts and then use the resource constraint that the total labour available is 12 hours. What is the slope of the PPF? Remember, it is called MRT.Not a previously graded question. Suppose the fictional country of Katmai produces only two goods: millet and microprocessors. The following graph plots Katmai's current production possibilities frontier, and includes six different output combinations given by black points (plus symbols) labeled A to F. Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply.Solve it correctly and explanations
- Practice Question #1 The German economy produces two goods: Glass and Concrete. Both goods are producedusing Workers (L) and Sand (K). The graphs below show allocations of labor and capital to the two industries.Solid Orange curves represent Glass isoquants, while dotted Blue curves represent Concrete isoquants. A) Sketch the production contract curve for this economy. Explain what this represents in words. (5Points)B) Draw an approximation of the production possibilities frontier for this economy. Explain any curvatureor kinks (or lack thereof) (5 Points).please help me with this questionAn economy has 8 units of labor and 8 units of capital that are allocated between industry X, with the DRTS production function x = K^(1/4)L^(1/4), and industry Y, with the CRTS production function y = K^(1/2)L^(1/2). Derive and graph the Production Possibilities Frontier for this economy. All consumers believe X and Y are perfect complements with tastes U = min (Y, 2X). Calculate production levels that are consistent with tastes and show these in your diagram.
- An economy has 22 units of labor and produces goods x and y. The production functions are x = 0.2L, and y = 0.5Ly, where Lx and Ly represent the labor allocation. Say the economy is currently producing x = 2 units and y = 6 units. This implies that Lx = and Ly= O 10:14 O 10: 12 O 8; 14 O 8; 12 --x--The first image I need help with the graph and the second image to solve the problem!Consider an economy that has a labor endowment of L = 40 units. The production functions are x = 0.5Lx and y = 4Ly, where x and y are consumption goods while Lx and Ly represent the labor allocation. What is the equation for the PPF?