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Demonstrate the law of increasing costs with a PPF. Show and explain how it works.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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On the following graph, use the blue line (circle symbol) to plot Nick's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Rosa's PPF. Nick and Rosa are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye on the rest. Corn Rye Nick 12 3 Rosa 15 5 (ROSA OR NICK) has an absolute advantage in the production of corn, and (ROSA OR NICK) has an absolute advantage in the production of rye. Nick's opportunity cost of producing 1 bushel of rye is__________bushels of corn, whereas Rosa's opportunity cost of producing 1 bushel of rye is_________ bushels of corn. Because Nick has a(HIGHER OR LOWER) opportunity cost of producing rye than Rosa, (NICK OR ROSA) has a comparative advantage in the…
Fill in the Blanks cupcakes A В muffins Type your answers in all of the blanks and submit Consider this unusual PPF. The opportunity cost of making cupcakes is lowest at point A (A, B, or C). The opportunity cost of making cupcakes is highest at point C (A, B, or C).
Graphically show William's production possibilities frontier. Debate should be on the vertical axis. Label four points on the graph: (A) a point inside the PPF; (B) a point on the PPF where debate is more valued than studying; (C) a point on the PPF where studying is more valued than debate; (D) a point outside the PPF. Explain the effects of an economy at point A Explain the effects of an economy at point B Explain the effects of an economy at point C Explain the effects of an economy at point at point D (assume that nothing in our economy changes) Does our PPF experience the law of increasing opportunity cost? How do we know? Under what conditions can we have a linear PPF rather than a "bowed-out" PPF? Sketch a PPF that experiences increasing opportunity cost and a PPF that experiences constant opportunity cost.
At one point along a PPF, 10 burgers and 7 sandwiches can be produced. At another point along the same PPF, 9 burgers and 10 sandwiches can be produced. The opportunity cost of a burger between these points is per burger. Select one: a. 7/10 of a sandwich b. 10/7 of a sandwich C. 3 sandwiches d. 1/3 of a sandwich
+ m/StudentFunctions/Interface/acellus_engine.html?ClassID=486002746 YouTube Maps The PPF curve shows a curved, negative relationship between two goods. This means that an increase in the production of one good requires which of the following? A. The greater sacrifices of the other good. 1 B. The smaller sacrifices of the other good. C. The equal sacrifices of the other good. -2022 International Academy of Science. All Rights Reserved.
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why is it not realistic for a PPF curve to be straight?
question attached!
Consider the following figure: A B PPF₂ PPF₁ D C E X Which of the following is an efficient production plan? O Country 1 producing at C and country 2 producing at B. O Country 1 producing at B and country 2 producing at D. Country 1 producing at A and country 2 producing at D. O Country 1 producing at D and country 2 producing at B.
What is the production possibilities frontier? A. a map that shows areas of the world in which capitalist production is highest B. a map that shows the frontier beyond which technological innovation is unprofitable C. a graph that shows the various combinations of resources that can be used to produce a given level of output D. a graph that shows the various combinations of output the economy can possibly produce given the available resources and technology
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based on the image and the PPF is point b efficient? why?