Suppose a small economy produces only two goods: apples and oranges. The production possibilities frontier (PPF) for this economy is given by the following equation: PPF: 5A + 3O = 60, where A represents the quantity of apples produced and O represents the quantity of oranges produced. Calculate the opportunity cost of producing one additional apple.

Justin has 5 days in a work​ week; each day he can create either 2 Android apps or 1 Apple app. Pallas also has 5 days to​ work; each day she can produce either 2 Android apps or 3 Apple apps. Using the line drawing​ tool, draw the production possibilities curve​ (PPC) for Justin in the adjacent graph titled​ "Justin's PPC". Label your curve appropriately.   Carefully follow the instructions​ above, and only draw the required objects.   Using the line drawing​ tool, draw the production possibilities curve​ (PPC) for Pallas in the adjacent graph titled​ "Pallas's PPC". Label your curve appropriately.   Carefully follow the instructions​ above, and only draw the required objects.   Using the mulitpoint curve drawing ​tool,draw the single production possibilities curve​ (PPC) for both Justin and Pallas in the adjacent graph titled​ "Joint PPC". Label your curve appropriately. ​(Hit the​ "Esc" key after you have plotted your last point to exit the drawing​ tool)   Carefully follow the…

Introduction to the Production Possibilities Curve (PPC) As you know, the basic economic problem is scarcity. Since we do not have enough scarce resources to satisfy everyone's needs and wants, we all have to make choices. We must choose how to spend our time, our energy, our money, and our material possessions, and for every choice that is made, a cost is suffered. The relationship between choice and cost can be shown in a graph called a production possibilities curve, or PPC. For example, consider a student who has 4 hours of free time in the evening. He or she can choose to spend some, all, or none of those 4 hours studying for a test the following day. He or she could also use the time to catch up on sleep. These choices can be graphed: Choice A - spend all 4 hours studying Choice B- spend 2 hours studying, and 2 hours getting extra sleep Choice C- spend all 4 hours sleeping Of course, other combinations of the 4 hours exist. The student could study for 3.5 hours, and get an extra…

The accompanying graph contains the production possibilities frontier (PPF) for Rubberland. Rubberland only makes two products, rubber band balls and rubber hoses, and on a given day can produce according to the PPF in the graph. Point A on the PPF represents the combination of the two goods Rubberland currently produces. When a new method of rubber processing is discovered, the productivity of all Rubberland's inputs increases. Please shift the PPF to show this change. Assume that Rubberland does not make more rubber band balls than they originally made at point A but still maximize their productive capabilities. Move point A to their new production point. How many more rubber hoses do they now produce per day than before?