Using Figure 1.3 above, an increase in the capacity to produce can be represented by a movement from: 1: Point D to Point C.2: Point F to Point D.3: Point B to Point C.4: Point B to Point F. The diagram in Figure 1.3 is a Production Possibility Frontier (PPF) graph, illustrating the trade-offs between the production of two goods: brooms and mops. **Axes:**- The horizontal axis represents the output of brooms.- The vertical axis represents the output of mops.**Curves:**- There are two curves depicted: PPF1 and PPF2. Each curve represents a different production possibility frontier. - **PPF1**: The inner curve, indicating a certain level of resources and technology available. - **PPF2**: The outer curve, suggesting an improvement in resources or technology, allowing for greater production capacity.**Points:**- **Point A**: Lies inside PPF1, indicating underutilization of resources.- **Points B, C, and D**: Positioned on PPF1, indicating efficient production points where resources are fully utilized.- **Point E**: Positioned between PPF1 and PPF2, implying potential outputs beyond current capabilities with PPF1 but accessible with PPF2 resources.- **Point F**: Lies on PPF2, showcasing an efficient production level with enhanced resources or technology.This graph is instrumental in understanding opportunity costs, efficiency, and economic growth.

A production possibility curve is a curve that represents the combination of output that firms can…

Answered: Using Figure 1.3 above, an increase in…

Using Figure 1.3 above, an increase in the capacity to produce can be represented by a movement from: 1: Point D to Point C. 2: Point F to Point D. 3: Point B to Point C. 4: Point B to Point F.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The graph to the right depicts an economy, Home, that produces both flowers and soybeans. Flowers are the labor intensive good and soybeans are the land intensive good. Home presently exports flowers. The graph also indicates Home's optimal point of production, X. Suppose that Home has acquired more land in which it can now produce 12 units of soybeans if all land were devoted toward its production. Using the three-point curved line drawing tool, draw the new production possibilities frontier that indicates this biased growth of land in Home. Properly label this curve. Carefully follow the instructions above and only draw the required object. The growth biased toward land causes OA. export-biased growth. O B. a decrease in the relative price of flowers. OC. a rightward shift of the relative supply curve. O D. import-biased growth. 16- 15- 14- 13- 12- 11- 10- 9- 7- 6- 5- Growth of a Factor Soybean output VV TT 7 8 9 10 11 12 13 14 15 16 Flower output €
QUESTION ONE 1.1 The purpose of consumption of goods by an individual is to derive satisfaction from the consumption of these goods. Consumer goods can be classified into three main categories. Discuss these categories of goods. 1.2 Explain the meaning of a complete outward shift of the production possibility frontier. Use a diagram to substantiate your answer.
please help with question below, Explain the concept of increasing-opportunity-cost with constant returns to scale. In your answer, assume that more of the labor supply is allocated to production of labor-intensive good X and more of the capital stock is allocated to capital-intensive good Y.
Hi there! I have been struggling with number 7 and cannot find a solution to it, please help me out and explain. Thank you!
Refer to the exhibit ...what does a movement from point G to F means?
Hi can you please help with following questions I am not sure how to solve them please assist with question A You are the sole survivor of a shipwreck on a desert island. You do not expect to be rescued.You can either use your time to grow food to consume immediately, or to build new tools andbuildings (capital) which will increase your supply of food in future years. a) Sketch your initial production function (total output of food + capital in terms of yourlabour input), and show how to turn this into a feasible set. Show your optimal choiceof how you spend your time, assuming you initially consume everything you produce.
An economy can produce leather using labor and capital and wheat using labor and land. The total supply of labor is 50 units. Given the supply of capital, the outputs of the two goods depend on labor input as follows: Labor Input to Leatheroutput of LeatherLabor Input of WheatOutput of Wheat 27 5 19.8 10 38.5 10 31.2 15 47.3 15 42.3 20 56 20 52.1 25 65.7 25 60.6 30 74.5 30 69 35 82.4 35 77.4 40 88.2 40 85.4 45 94.1 45 93.9 50 100 50 100 a. Graph the production functions for leather and wheat. b. Graph the production possibility frontier. What will happen if more labor is employed?
Consider the pizza market in BC. Suppose an innovation in cheese processing technology makes it possible to produce more pizzas at a lower cost than ever before. Holding all other factors constant, What will be the effect of this technology on pizza market. Draw a graph and explain.
Supermarché Jean Claude has decided to manufacture its own brand of non-alcoholic beverages, called NAB, and chocolate bars, called S-JC. A certain amount of money has been allocated to the production of these two products. Jean Claude believes in the old saying that a picture is worth a thousand words, and once again, he has called on you. This time, he wants to see diagrams that illustrate the effects of each of the following events on the production possibilities for NABS and S-JCs so he can visualize the situation. (a) A new and more efficient method of producing non-alcoholic beverages is discovered. (b) The demand for both non-alcoholic beverages and chocolate bars increases. (c) More workers are hired to produce S-JCs. (d) Resources are transferred from S-JC production to NAB production. (e) All workers are trained so that the quality of their labour services improves. Instructions Produce the series of graphs with accompanying texts (150-175 words) so that Uncle Jean Claude…
Suppose pigs (P) can be fed corn-based feed (C) or soybean-based feed (S) such that the production function is P=2C+5S. If the price of corn feed is $4 and corn feed is on the horizontal axis, and the price of soybean feed is $5 and soybean feed lies on the vertical axis, what is expansion path? the horizontal axis Oa. Ob. Oc. S=2C/5 C. d. C=5S/2 the vertical axis
Suppose you are a producer and you need to identify what combination of labour and capital you should go with that you can make use of your resources to the optimal level; how will you identify your expansion path for production at minimum cost with the two factors of production explain your answer with the help of diagrams.
Wine A B F E с Bread D Refer to Figure 2-1. The most inefficient point depicted is: Point A Point C Point E Point G