The following is the production possibility table for a AZ Cosmetics that produces cosmetics, given equal amount of resources: Lipstick Eyeliner 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 00 3,000 6,000 9,000 12,000 15,000 18,000 21,000 24,000 27,000 30,000 a. Plot the production possibility curve for AX Cosmetics.b. Calculate the productivity ratio for both products.c. When additional resources are added, AZ Cosmetics is able to produce 20% more quantity for both products. If the productivity ratio remains the same, calculate the new production possibility table for the company.
The following is the production possibility table for a AZ Cosmetics that produces cosmetics, given equal amount of resources: Lipstick Eyeliner 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 00 3,000 6,000 9,000 12,000 15,000 18,000 21,000 24,000 27,000 30,000 a. Plot the production possibility curve for AX Cosmetics.b. Calculate the productivity ratio for both products.c. When additional resources are added, AZ Cosmetics is able to produce 20% more quantity for both products. If the productivity ratio remains the same, calculate the new production possibility table for the company.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 25RQ: In choosing a production technology, how will firms react if one input becomes relatively more...
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The following is the production possibility table for a AZ Cosmetics that produces cosmetics, given equal amount of resources:
Lipstick
Eyeliner
10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0
0 3,000 6,000 9,000 12,000 15,000 18,000 21,000 24,000 27,000 30,000
a. Plot the
b. Calculate the productivity ratio for both products.
c. When additional resources are added, AZ Cosmetics is able to produce 20% more quantity for both products. If the productivity ratio remains the same, calculate the new production possibility table for the company.
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