a. Draw a PPF map (put soda in the vertical axis and pizza in the horizontal axis), showing all the points on the PPF. b. What is the opportunity cost of an extra pizza when you are on segment AB? What about when you are at segment CD? (i.e., how many sodas you have to give up in order to get an extra pizza? SHOW YOUR WORK!) c. What is your PPF's shape? Is it a straight line or does it have a bowed outward shape? Justify! d. Suppose that there is a new technology that affects ONLY the production of soda. Illustrate this effect on your PPF map.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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This question is a file-upload question. Work your answer in a piece of paper, take a picture
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Using the table below answer the following:
PPF's points and data for soda and pizza
Points
Soda
Pizza
A
10
B.
6.
D
3
a. Draw a PPF map (put soda in the vertical axis and pizza in the horizontal axis), showing all
the points on the PPF.
b. What is the opportunity cost of an extra pizza when you are on segment AB? What about
when you are at segment CD? (i.e., how many sodas you have to give up in order to get an
extra pizza? SHOW YOUR WORK!)
c. What is your PPF's shape? Is it a straight line or does it have a bowed outward shape?
Justify!
d. Suppose that there is a new technology that affects ONLY the production of soda.
Illustrate this effect on your PPF map.
Transcribed Image Text:This question is a file-upload question. Work your answer in a piece of paper, take a picture with your phone and upload the file. Using the table below answer the following: PPF's points and data for soda and pizza Points Soda Pizza A 10 B. 6. D 3 a. Draw a PPF map (put soda in the vertical axis and pizza in the horizontal axis), showing all the points on the PPF. b. What is the opportunity cost of an extra pizza when you are on segment AB? What about when you are at segment CD? (i.e., how many sodas you have to give up in order to get an extra pizza? SHOW YOUR WORK!) c. What is your PPF's shape? Is it a straight line or does it have a bowed outward shape? Justify! d. Suppose that there is a new technology that affects ONLY the production of soda. Illustrate this effect on your PPF map.
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