(Figure: Production Possibility Frontier for Trains and Planes) Use Figure: Production Possibility Frontier for Trains and Planes. Points A, B, E, and F: Trains (per period) 18 16 12 8 4 0 A 4 8 B 12 Production possibility frontier E indicate that society wants planes more than trains. F H 16 18 20 Planes (per period) show that the opportunity cost of trains increases as more trains are produced, while that of more planes decreases as more planes are produced. O indicate constant opportunity costs for trains and increasing opportunity costs for planes. O indicate combinations of trains and planes that society can produce using all of its resources efficiently.

(Figure: Production Possibility Frontier for Trains and Planes) Use Figure: Production Possibility Frontier for Trains and Planes. Points A, B, E, and F: Trains (per period) 18 16 12 8 4 0 A 4 8 B 12 Production possibility frontier E indicate that society wants planes more than trains. F H 16 18 20 Planes (per period) show that the opportunity cost of trains increases as more trains are produced, while that of more planes decreases as more planes are produced. O indicate constant opportunity costs for trains and increasing opportunity costs for planes. O indicate combinations of trains and planes that society can produce using all of its resources efficiently.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter2: Economic Tools And Economic Systems

Section: Chapter Questions

Problem 3.5P

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Similar questions

What does a production possibilities frontier illustrate?
Explain why societies cannot make a choice above their production possibilities frontier and should not make a choice below it.
What is comparative advantage?
9. The following data show the combinations of output of cars and computers. Combination Computers Cars A 3000 B 2200 600 2000 700 D 1000 900 E 1000 a) Draw a production possibilities frontier (PPF) for computers and cars output. Keep the cars on x-axis. (Graph should be properly labelled) b) Briefly explain why it most likely has a bowed-out shape. c) Show a point of output that is certainly impossible for the society to achieve. Show a point on production possibility frontier that is achievable but inefficient. d) Show graphically the impact on PPF of technology advancement in the form of assembly line of cars production (Graph should be properly labelled) e) Show graphically the impact on PPF of the newly discovered input used inputs for both cars and computers.
An economy produces two goods ,X and Y .lt uses two means of production, labour and capital. A unit of labour can produce either 1unit of X or 4units of Y (or linear combination of the two).A unit of capital can produce either 4units of X or 1unit of Y (or linear combination of the two)there are 100units of each means of production. (i) Draw the production possibility frontier of the economy when the two goods can only be produced by a mixture of both factors. (ii)What will be the opportunity cost of X if the economy produces 50units of X ? (iii) Given that the production technology is linear ,will the opportunity cost of X remain unchanged when we produce 90units of X ? (iv)Briefly explain the difference between the PPC with a constant opportunity cost and the PPC with an increasing opportunity cost as more output of one good is produced. Use a well labeled diagram to explain your answer?
EX LO d @ Safari File Edit View History Bookmarks Window Help Lily ✓ My Home Courses Rental Options V Catalog and Study Tools Dashboard College Success Tips Help Career Success Tips Give Feedback « 100 CENGAGE MINDTAP PISTACHIOS (Millions of pounds) 48 42 36 Homework (Ch 03) The following graphs show the production possibilities frontiers (PPFS) for Shenandoah and Denali. Both countries produce peas and pistachios, each initially (i.e., before specialization and trade) producing 18 million pounds of peas and 9 million pounds of pistachios, as indicated by the grey stars marked with the letter A. 30 24 18 PPF 12 6 0 0 C Mind Tap - Cengage Learning 6 S Shenandoah A 12 18 24 30 PEAS (Millions of pounds) 36 42 48 ? JAN 28 PISTACHIOS (Millions of pounds) 48 42 36 30 24 6 C MindTap - Cengage Learning 0 ng.cengage.com PPF 6 Denali A 12 18 24 30 36 PEAS (Millions of pounds) 42 48 Shenandoah has a comparative advantage in the production of while Denali has a comparative advantage in the…
Macmillan Learn Suppose that Ned can produce either potato chips or computer chips. If he only produces potato chips he can produce 50 in a day. If he only produces computer chips, he can produce 25 in a day. Drag the endpoints of the line to plot his production possibilities frontier (PPF) on the graph. Potato Chips 50 45 40 35 30 25 20 15 10 Incorrect 5 O 0 5 10 15 20 25 30 Computer Chips 35 40 Ned's PPP 45 50 What is the opportunity cost of potato chip production in terms of computer chips? 4/3 0 0 0 1/2 50 25 2 3/4