Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 2.1, Problem 2ST
To determine
Explain what does the law of increasing cost do with a bowed-outward
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Graphically show the production possibilities frontier for the nation of Stromboli, using the data given in the following table. Does the principle of increasing cost hold in Stromboli?
Stromboli’s 2019 Production Possibilities
Pizzas per Year Pizza Ovens per Year
75,000,000 0
60,000,000 6,000
45,000,000 11,000
30,000,000 15,000
15,000,000 18,000
0 20,000
What is sweetens opportunity cost of manufacturing 1 million cars per year?
Illustrate and explain the Production possibilities frontier (PPF)
Chapter 2 Solutions
Microeconomics
Ch. 2.1 - Prob. 1STCh. 2.1 - Prob. 2STCh. 2.1 - Prob. 3STCh. 2.1 - Prob. 4STCh. 2 - Prob. 1QPCh. 2 - Prob. 2QPCh. 2 - Prob. 3QPCh. 2 - Prob. 4QPCh. 2 - Prob. 5QPCh. 2 - Prob. 6QP
Ch. 2 - Prob. 7QPCh. 2 - Prob. 8QPCh. 2 - Prob. 9QPCh. 2 - Prob. 10QPCh. 2 - Prob. 11QPCh. 2 - Prob. 12QPCh. 2 - Prob. 13QPCh. 2 - Prob. 1WNGCh. 2 - Prob. 2WNGCh. 2 - Prob. 3WNGCh. 2 - Prob. 4WNGCh. 2 - Prob. 5WNGCh. 2 - Prob. 6WNGCh. 2 - Prob. 7WNGCh. 2 - Prob. 8WNGCh. 2 - Prob. 9WNGCh. 2 - Prob. 10WNGCh. 2 - Prob. 11WNGCh. 2 - Prob. 12WNG
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- ( a) why is the slop of PPF downward? (b) why does the PPF look concave to the origin? (c) What is positive economic analysis?arrow_forwardDrag the production possibilities frontier on the graph to show the effects of a time saving innovation in the manufacturing of carsarrow_forwardWhat fundamental concept is behind the PPF model?arrow_forward
- Why is it inefficient for an economy to be inside the production possibilities frontier?arrow_forwardIf an unattainable point outside a production possibilities curve can become an attainable and even an efficient point, can an inefficient point become an efficient point in the production possibilities curve model? Explain with a graph.arrow_forwardLook at the following production possibilities curve and answer the question. How would you interpret the movement of PPF from PP1 to PP2? Fax Machines 0 A B E O C Photocopiers PP1 PP2 ?arrow_forward
- what is a basic definition of per diems? what are the pros and cons of per diems?arrow_forwardMacroeconomics Basics What is a production possibilities frontier (PPF)? Illustrate (DRAW) your answer by drawing a PPF, properly labeled and show an unattainable production combination.arrow_forwardSuppose Ireland produces only two goods: barley and cars. The following graph shows Ireland's current production possibilities frontier (PPF), along with six output combinations represented by black points (plus symbols) labeled A to F. 100 80 メ8 PPF 46, 36 40 メイ 20 20 40 60 80 BARLEY (Millions of bushels) 100 CARS (Millions) etarrow_forward
- based on the image and the PPF is point b efficient? why?arrow_forwardColin gives away 2 marbles each time he makes a pokemon card construct a graph that represents constant opportunity costarrow_forwardCan you confirm that I am correct with these positive and normative statements: Positive statement: When oil production slows in Texas, employment and tax revenues decline, and budget cuts at the state and local levels often follow. (Craymer has estimated that the state loses $85 million per year for every $1 decrease in oil prices.) Normative statement:If Russia agrees to production cuts and COVID-19 goes dormant in the hot summer months, as some experts expect, Texas’ coffers will have time to recover before lawmakers convene in 2021 to write a new budget. Or would this be a normative statement:Experts said Texas is better positioned to handle an oil price collapse today thanks to a diversified economy. The last collapse in oil prices, in 2014, also forced the industry to cut costs and otherwise become more efficient. But University of Texas at Austin energy resources professor Michael Webber said COVID-19 throws an unprecedented economic variable into the mix.arrow_forward
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