Assume that it takes 2 hours of labor to produce a unit of good X and 6 hours of labor to produce a unit of good Y. What is the opportunity cost of producing 2 units of good Y?4 units of good X2 units of good X1/6 unit of good X6 units of good XZero opportunity cost, if all the labor is currently employed

The next best alternative is commonly referred to as opportunity cost. It's also known as the…

Assume that it takes 2 hours of labor to produce a unit of good X and 6 hours of labor to produce a unit of good Y. What is the opportunity cost of producing 2 units of good 4 units of good X 2 units of good X 1/6 unit of good X

Assume that it takes 2 hours of labor to produce a unit of good X and 6 hours of labor to produce a unit of good Y. What is the opportunity cost of producing 2 units of good 4 units of good X 2 units of good X 1/6 unit of good X

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter2: Production Possibilities Frontier Framework

Section: Chapter Questions

Problem 4QP

See similar textbooks

Related questions

Q: Suppose China can produce two goods, cloth and food and has three factors of production labor (L),…

A: Factors of production Factors of production refer to the resources which are used while…

Q: A firm with two plants, A and B, has the following estimated demand and marginal cost functions: Qd…

A: Marginal cost is the additional cost incurred to produce an additional unit of output .

Q: Golden Age of fiscal policy is has all of the following, except: O under 2 percent inflation rate O…

A: The policy that uses the collection of revenue by the government through taxes or cutting back taxes…

Q: An oil refinery finds that it is necessary to treat the waste liquids from a new process before…

A: The measure that depicts uniform costs of estimated receipts and expenditure of the project life…

Q: What do you think about the income trap - is it a myth or reality? How does the middle-income trap…

A: in the middle income situation countries growth rate stuck at some points due to various factors…

Q: How does innovation disrupt the flow of an economy to any given organization? Discuss

A: When talking about the term 'disrupt' it can be said that it is the hurdle or disturbance in a…

Q: As the Country Director of a multi-national company in Ghana, you have decided to conduct a survey…

A: This evaluation will cover one non-probability sampling strategy and two probability sampling…

Q: Online marketing course demand has increased in the last few years in India among young…

A: You're missing out on some of the most useful information available to help you build your business…

Q: 1. The price of milk has increased from $2.00 to $2.20, causes quantity to decrease from 10 gallons…

A: Elasticity of demand states that change in demand due to change in price , and by using percentage…

Q: Cash Flow Diagram. Show your complete solution and box your answers. Construct a cash flow diagram…

A: Cash Flow at Year 0 = -19000 Cash Flow at Year 1-4 = 8100

Q: How is the “free-rider” problem so potentially vexing to the challenge of mitigatingclimate change?

A: Public goods are those goods which are non-rivalrous and non-excludable.

Q: First cost, $ Annual cost, $ per year -33,000 -8,000 -51,000 -3,500

A: Annual Worth (AW) Analysis is characterized as the same uniform annual worth of all assessed…

Q: Which one of these is not an agriculture analytics usecase? Select one: a.Intelligent monitoring &…

A: agriculture analytics assists you with separating significant experiences that can prompt better…

Q: Use an appropriate economic model (graph) to show the effect of an increase in the worldwide…

A: Agriculture is important to the global economy. Its functions are diverse and include food security,…

Q: 140 123.33 90 56.67 Price 100 133.33 -MR MC ATC Demand Quantity

A: Here, the given graph shows the revenue, demand, and cost curves of a firm.

Q: 10- If labor is on the vertical axis and capital is on the horizontal axis, the slope of an isocost…

A: The line that depicts the various combinations of the inputs that are used which tend to cost the…

Q: Question 6 Hand written plzz - 2%, 12t4%, and Imagine that in a given point in time, t, we observe…

A: Answer - The expectation theory :- According the expectation theory the long run interest rates…

Q: and The following graph shows the market for pianos in 2007. Between 2007 and 2008, the equilibrium…

A: "Demand curve represents an inverse relationship between quantity demanded of a product and price of…

Q: 1) Calculate GDP MP and NNPFC from the following Net domestic product at market price Net indirect…

A: Here, information about different economic activities are given using which one can compute national…

Q: An asset costing P20,000 was purchased 3 years ago. At that time it was estimated that it would have…

A: Salvage value is the assessed book value of an asset after depreciation is finished, in light of…

Q: (c) Use your formula for E to determine the selling price that would have resulted in the largest…

A: We have demand equation: q=-10p+4360 Where q is in million and price is $p From part A Price…

Q: What might be an unintended effect of an inflation rate ceiling? Group of answer choices The real…

A: As per the Fisher equation, Real interest rate = Nominal interest rate - Inflation rate

Q: Question(4): A power plant is being considered in the dead sea location. For an initial investment…

A: The simple payback period alludes to the time expected to recover the assets exhausted in a…

Q: Question 14 To determine the profit maximizing amount of labor for a firm to hire, the firm should…

A: Marginal product refers to change in total product by hiring one more unit of input in production.

Q: True/False: When a per-unit tax is imposed on a polluter, the marginal social cost curve shifts to…

A: Externality refers to cost or benefit imposed on society due to economic activity.

Q: 9. Measuring imbalances between demand and supply - example 10.How does the office market work…

A: *Hi there as you have posted multiple questions following our guidelines we can only solve the first…

Q: 4.1- Data Table In the table below, we will see the change in the economic data of the USA from 2017…

A: The Real GDP/Capita, Growth rate of Real GDP/Capita, Inflation rates, interest rates, bank rate, etc…

Q: Mr Majola owns a shop where he repairs household appliances. He would like to buy a cell phone so…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer first three subparts…

Q: Determine whether the statements is true, false, or uncertain. If the statement is false or…

A: Negative externality refers to the situation when there is an adverse impact of one's action on any…

Q: Define and explain the formation of NEDLAC

A: Aims: This policy aims at promoting economic growth along with social equity. It aims at considering…

Q: Can innovation and new production technologies delay or stop the occurrence of diminishing returns?

A: Diminishing returns The diminishing returns is very much an economic principle that states that when…

Q: A10. What is “relative inequality” and how is it measured? How is relative inequality different to…

A: Relative inequality The disproportionality of income is referred to as relative income disparity.…

Q: True/False: Game theory is useful in explaining oligopoly markets because firms base their actions…

A: Markets which has few large firms dominating the industry, are oligopolists.

Q: Q48 If the marginal product of labor divided by the price of labor is less than the marginal product…

A: Marginal product of labor is defined as the change in the output caused by employing additional…

Q: 9. What are the equilibrium conditions in the real estate market? What is the structural vacancy…

A: 9. Real estate equilibrium condition When the supply of commodities meets demand, a marketplace is…

Q: When a good is rival, Group of answer choices one person's use of the good diminishes another…

A: A good either be rival or non-rival in nature. A good is non-rival in nature when the consumption…

Q: Link and Zelda each have 12 hours a week they can spend making costumes and accessories for their…

A: Opportunity cost is the value of next best alternative for the given level of resources.

Q: Consider the criticisms of the Rwanda and Yugoslavia tribunals. Which of the following was NOT one…

A: Since you have asked multiple questions, we will solve first question for you. In case you want any…

Q: market failure is any economic outcome in which Group of answer choices the market does not provide…

A: Equilibrium is achieved at the output level where Qs equals Qd

Q: What do you think about the income trap - is it a myth or reality? How does the middle-income trap…

A: Indermit Gill and Homi Kharas coined the term "middle-income trap" to describe general phenomena…

Q: The market price of pizzas in a college town increased recently, and the students in an economics…

A: According to the question, The market price of pizzas in a college town has increased. The cause…

Q: value). They decide to have a 10% sale on them. What will happen to Purebread's total revenues on…

A: The Elasticity of demand states that how much the quantity demanded will change in context with…

Q: Define and explain the structure of NEDLAC

A: There are many economic institutions that work together for the betterment of the economy and the…

Q: Which type of financial intermediary provides individual investors with professional management of…

A: When talking about financial intermediaries, they are the people or organizations that assists…

Q: Question 6 Suppose the yearly demand and supply curves for Purebread Organic Dog Biscuits is given…

A: Demand refers to the quantity of an item or service that consumers purchase at various prices during…

Q: Table C. Quantity Sold 0 1 2 3 4 X Price per unit 13 13 13 13 13 = Total revenue 0 13 ? 39 52…

A: Total revenue is denoted to be as the full amount or the overall amount of the total sales of goods…

Q: Using Microsoft Excel, create an investment cash-flow diagram that will have a present worth of zero…

A: The present worth of an investment is the value of an investment that has been discounted from the…

Q: The information in the table below shows the demand schedule for water in a certain small town.…

A: We have given that the marginal cost for producing water is $4 per bottle. From the given price and…

Q: Selected accounts with some amounts omitted are as follows Work in Process Oct. 1 Balance 20,700…

A: * SOLUTION :- Given that ,

Q: Construct the multiplier model using the consumption function C = 100 + 0.80Y and an investment…

A: Given: Consumption function C = 100 + 0.80Y This implies that MPC is 0.80. The expenditure…

Question

Assume that it takes 2 hours of labor to produce a unit of good X and 6 hours of labor to produce a unit of good Y. What is the opportunity cost of producing 2 units of good Y?
4 units of good X
2 units of good X
1/6 unit of good X
6 units of good X
Zero opportunity cost, if all the labor is currently employed

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

If it is not possible to increase the output of one good without decreasing the output of the other, when there are only two goods, thenthis situation would describe a point on a production possibilities frontier for the producer.the outcome can be described as efficient.there is no unemployment of resources.All of these outcomes are correct.
What does the slope of a curve between two points have to do with the opportunity cost of producing additional units of good?
Suppose that Sandy can produce 10 economic reports or make 2 sales calls. Suppose Tim can produce 2 economic reports or make 1 sales call. Which of the following is CORRECT? The opportunity cost for Tim of producing one sales call is 1/2 of an economics report. The opportunity cost for Sandy of producing one sales call is 10 economics reports. The opportunity cost for Sandy of producing one economics report is 1/5 of a sales call. The opportunity cost for Tim of producing one economics report is 2 sales calls.
How many units of labor and capital should be purchased to maximize production? What is the maximum number of units of production?
Consider Babs and Donna, who can each produce cake, beer, or some combination of the two using only 40 hours of labor each. Babs can produce a maximum of 50 cakes if she produces no beer, and 100 units of beer if she produces no cake. Donna can produce a maximum of 100 cakes with no beer produced; if she makes no cake, she can produce 120 units of beer. Calculate donnas opportunity cost for a cake
An economy will be operating on a point inside of its production possibilities frontier if there is inefficiency in resource allocations.what is meant by inefficiency ?you may find it helpful to use an example in your answer.
Suppose a nation has a total of 12 units of labor, which can be used to produce either guns or butter. One gun takes 6 units of labor to produce and 1 butter takes 2 units of labor to produce. Why shouldn't the nation produce 1 gun and 2 butters?
What is opportunity cost? Explain the Law of Increasing Opportunity Costs with a numerical table and a graph as well.
A farmer produces both green beans and corn. The farmer must give up 31 bushels of corn to get 7 more bushels of green beans. If the rate of transformation (or tradeoff) between the two goods is constant, then the opportunity cost of 1 bushel of green beans in terms of bushel of corn is? The result should be given to two decimal places in absolute value (e.g if the result is 3.678, write 3.68, if the result is -3, write 3.00.) Your Answer:
Define the opportunity cost . What is the significance of opportunity cost in economics.
Consider Robinson Crusoe who lives alone on the island. He can produce two goods eggs (good X) and yoghurt (good Y). The only input to the production of these goods is his labour. He works 12 hours per day and sleeps for 12 hours - there is no time to play- this is a very grim economy... Let Lx denote the amount of time devoted to producing eggs (good X) and Ly denote the amount of time devoted to producing yoghurt (good Y). Eggs are produced using the production technology X = 5√Lx and yoghurt is produced using the production technology Y = 4Ly. His preferences for eggs and yoghurt are described by the indifference curves with marginal rate of substitution MRSxy = Y/X. a) What is the production possibility frontier (PPF) for this economy? Hint: find how much labour is required to produce x eggs and y yoghurts and then use the resource constraint that the total labour available is 12 hours. What is the slope of the PPF? Remember, it is called MRT.
I am eight hour day Andy can produce either 24 loaves of bread or 8 kilograms of butter. In an eight hour day Rolfe can produce either 8 loaves of bread or 8 kilograms of butter. a)what is Andy's opportunity cost of producing one loaf of bread? What is rolfes opportunity cost of producing one loaf of bread b) who has the comparative advantage in bread production? Who has comparative advantage in butter production? c)would they both gain from specialization and trade in other each other? Show it through a numerical example