Econoline Company produces only two goods and they operate with limited resources. The production manager decides to conduct an analysis of its production possibilities to determine the best use of its limited resources. They create a Production Possibility Frontier (PPF) diagram to represent the maximum combinations of good X and good Y that can be produced with their available resources. As the output of Good Y increases along the frontier, which of the following changes involves the largest opportunity cost? 82950 15 10 0 a) 0 to 5 units b) 5 to 10 units c) 10 to 15 units d) 15 to 20 units Good X d
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- Ramon and Sammy are working on a group homework assignment. The homework consists of a set of essay questions and a set of questions on graphing models. Ramon can finish an essay question in about 15 minutes and a graphing question in about 30 minutes. Sammy can finish an essay question in about 20 minutes and a graphing question in about 35 minutes. Assume that Ramon and Sammy produce the same quality answers. Calculate Ramon and Sammy's opportunity cost of each task. Please round each answer to the nearest tenth. a. Ramon’s opportunity cost of completing an essay question: _____graphing questions b. Ramon’s opportunity cost of completing a graphing question: _________essay questions c. Sammy’s opportunity cost of completing an essay question: _________graphing questions d. Sammy’s opportunity cost of completing a graphing question: _________essay questions e. If the two want to specialize in working on…Production Possibility Frontier (PPF) - This graph shows the maximum combination of two goods that an economy can produce, given its resources and technology. It is used to illustrate the concept of opportunity cost and to explain the trade-offs that must be made when choosing how to allocate resources. Show this graph with an example please.Michael owns a strawberry farm in central California and is deciding how many strawberries to supply this month. Which question appropriately applies the cost-benefit principle to the supply decision? Is the price Michael gets for the extra bushel of strawberries at least as large as the marginal cost? What is the fixed cost of production for Michael's strawberries? If Michael was not producing strawberries, how else could he use his resources? Is Michael "holding all else constant" when making this decision?
- Production possibilities represent the various combinations of two goods that can be produced given (a) fixed resources and (b) fixed technology. All combinations on the production possibilities curve represent the full-utilization of resources. Any point inside the production possibilities curve indicates that resources are under-utilized and more output could be produced with the available resources. Any point outside the production possibilities curve indicates that the available resources can't support the production of the given output combination. At full-utilization of resources, the only way to increase the production of both goods is by shifting the production possibilities curve. Now consider my backyard garden. I have 100 square feet of allocated space for the vegetable garden which is my fixed resource. for simplicity, I am growing only two vegetables: tomatoes and eggplant. If I grow all tomatoes, I can get a total of 10lbs, and if I grow all eggplant 8lbs. By producing…You produce quesadillas (Q) with beef (B) and cheese (C). The production process is as so: Q = 40B - 1.5B² +50C - 1.5C² The price of beef is $4 per box, and the price of cheese is $5 per box. The boxes are the same size and you only have room for 9 boxes in your freezer. How many boxes of cheese should be purchased?QUESTION 7 Olivia and Susan operate a store that sells burritos. There are two main activities: chopping up the ingredients and then cooking the fillings for the burritos. Olivia and Susan are deciding who should chop the ingredients and who should cook the fillings in order to maximise output. Olivia Susan Chopped Food (kg/hr) 15 20 Cooked Food (kg/hr) 20 30 Which of the following statements are true: For Olivia, the opportunity cost of 1kg of cooked food is 1.33kgs (to 2 decimal places) of choppectood. For Susan, the opportunity cost of 1kg of cooked food is 0.67kgs (to 2 decimal places) of chopped food. Susan should specialise in chopping. Olivia has an absolute advantage in chopping.
- Consider your decision to read this textbook on economics. Identify which of the four core principles of economics (the cost benefit principle, the opportunity cost principle, the marginal principle, or the interdependence principle) is most relevant for the following aspects of that decision. Reading this textbook will help establish a solid foundation for understanding concepts you will learn in more advanced economics courses. Reading this textbook will require time and effort, but doing so will help you improve your grade in this course. The time you will spend reading this textbook could instead be used to study for your chemistry exam. Each extra page that you read and each practice problem that you complete will help you increase your understanding of the material.Suppose that MASU managed to get Olivia Rodrigo to play a concert at Convocation Hall. Tickets cost $600. At the same time, Gheorghe Zamfir (The Master of the Pan Flute) is playing in Brunton Auditorium. Tickets cost $50. You've always wanted to see Zamfir, and consistently told your friends that you would pay up to $250 to see him in concert. What is your economic cost of going to the Olivia Rodrigo concert? Please provide your answer in monetary terms and show your reasoning.Not a previously graded question. Becky is a talented artist who sells hand-crafted goods on her website. Becky currently crafts and sells both picture frames and pillows. She spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of her time is spent on each good.
- Suppose the production possibility frontier for cheese-burgers (C) and milkshakes (M) is given by C + 2M = 600 a. Show working and graph this frontier. b. Assuming that people prefer to eat two cheeseburgers with every milkshake, how much of each product will be produced? show working and indicate this point on the graph. c. Given that this fast-food economy is operating efficiently, what price ratio (PC/PM) must prevail? show workingYou run a coffee shop that is open all day. You are considering staying open in the evening. The total benefit (i.e.. Krevenue) from keeping your coffee shop open for each additional hour at night is shown in the table. Fill out the marginal benefit (the difference from one row to the next). (Enter your answers as a whole number. Include a negative sign (-) if the answer is negative but do not include a plus sign (+) if the answer is positive.) Hours per Night 0 1 2 3 4 5 6 Total Benefit $0 60 90 110 120 110 95 Marginal Benefit If your goal is to maximize total revenue, you should keep your store openhours. (Enter your answer as a whole number.) If you go beyond this amount, the marginal revenue Suppose it costs $25 for each additional hour that you keep the store open. If this is the case, you should keep your store open for hours at night. (Enter your answer as a whole number.) 11Analyze how pareto efficiency is achieved from consumption activities in an economy