Josh, Ben and John make pies and bread.The opportunity cost of making pies is 1/2 for Josh, 1 for Ben, and 2 for John.Their joint production possibilities frontier is depicted below:Loavesof Bread27AВ• E20C102429Pies14At point C, which of the following is true?a. Ben and Josh are producing only pies, John is producing only bread..Ob. Ben is producing all pies, Josh is producing pies and bread, John is producing only bread.Oc. Ben is producing both pies and bread, Josh is producing only pies, John is producing only bread.d. Ben is producing bread, Josh is producing pies and John is producing both pies and bread.

The Production Possibilities Frontier (PPF)/ creation plausibility boondocks is a diagram that shows…

Answered: The opportunity cost of making pies is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Ice cream (millions of gallons per year) 5 A 4 В 3 2 3 4 Milk (millions of gallons per year) The figure above shows the production possibilities frontier for a country. The opportunity cost of a gallon of milk between combination point A and Bis A) 4 gallons of ice cream for a gallon of milk. B) 3 gallons of ice cream for a gallon of milk. C) 1 gallon of ice cream for a gallon of milk. D) 1/3 of a gallon of ice cream for a gallon of milk. E) zero because at point A, zero milk is being produced.
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?
At one point along a PPF, 10 burgers and 7 sandwiches can be produced. At another point along the same PPF, 9 burgers and 10 sandwiches can be produced. The opportunity cost of a burger between these points is per burger. Select one: a. 7/10 of a sandwich b. 10/7 of a sandwich C. 3 sandwiches d. 1/3 of a sandwich
Consider the following figure: A B PPF₂ PPF₁ D C E X Which of the following is an efficient production plan? O Country 1 producing at C and country 2 producing at B. O Country 1 producing at B and country 2 producing at D. Country 1 producing at A and country 2 producing at D. O Country 1 producing at D and country 2 producing at B.
Barb can produce 10 apples or 10 oranges on her farm, while Jim can produce 20 apples or 40 oranges. Is there a basis for trade? O yes, they have different opportunity costs of production O They should give up apples and oranges and grow kale none of these O No. Jim produces more apples and oranges
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).
Suppose that the opportunity cost of producing 10 chickens is always 8 turkeys. Giventhis, the relevant production possibility frontier must be:
Graphing QuestionSuppose that WestJet can provide 700 flights per day and the opportunity cost of providing a flight is constant. WestJet reaches allocative efficiency when it provides 400 Western flights and 300 Eastern flights per day Draw and label WestJet's production possibilities frontier. Make sure the PPF intersects both axes.Draw a point to show the allocative efficiency. Label it P1Draw a point to show a combination of flights that doesn't use all of WestJet's resources. Label it P2

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The opportunity cost of making pies is 1/2 for Josh, 1 for Ben, and 2 for John. Their joint production possibilities frontier is depicted below: Loaves of Bread 27 A В • E 20 C 10 ......