What is the axiom of consumer choice that implies that consumers spend all their income in order to maximize utility? and Explain the main assumption behind a concave production possibilities frontier

Q: Please graph two hypothetical production possibilities models. In one of the graphs, please…

A: Meaning of Production Possibility Frontier: The term production possibility frontier refers to the…

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: Consider an economy that produces two goods , X and Y. Use a production box diagram to construct the…

A: Production possibility frontier is a graph that shows the different combinations of two goods that…

Q: Q16. In a competitive market, all of the choices along the production possibility frontier display_…

A: Productive and allocative are two types of economic efficiency.

Q: Consider a production possibilities curve. The origin and two points A and B may be connected by one…

A: Scarcity is an economic concept that relates to the reality that there is a finite number of human…

Q: What do I have to do here?

A: The production possibilities frontier shows different combinations of two goods that can be produced…

Q: Explain the main assumption behind a concave production possibilities frontier

A: The Production Possibility Frontier (PPF) is concave due to the increasing opportunity cost due to…

Q: Suppose a bakery has 14 employees to be designated as bread bakers (B) and cake bakers (C), so that…

A: B + C = 14where B stands for bread bakers and C stands for cake bakers. Initial production functions…

Q: The individual production points on each person's production possibilities frontier represent their…

A: Production possibility curve is used to represent the maximum amount of output that an individual…

Q: If capital can only be used to produce shoes, land can only be used to produce beans, and labor is…

A: Given capital and land are immobile and can only produce shoes and beans respectively, labor would…

Q: Sharon is a skilled toy maker who is able to produce both trains and balls. She has 8 hours a day to…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Discuss how the production possibility frontier model can be used to basic economic problem of…

A: "Since you have posted multiple questions ,we will solve first question for you.If you want…

Q: Consider a specific-factors model where two Countries, Denmark and Tanzania, use labor to produce…

A: In Tanzania: L=LC + LH = 100 workers J = 40 jerrycans A =1000 land C = 4 x Lc0.5 x A0.5 MPLc = 2 x…

Q: Explain the main assumption behind a concave production possibilities frontier.

A: Production Possibility Frontier (PPF) shows the combination of two goods produced with given sets of…

Q: In your own words, clearly distinguish and differentiate why economists say all resources are scarce

A: Resources are the set of material, stock, and other assets used in the organizations for smooth and…

Q: Please help me solve this problem. Thank you!

A: Production possibility frontier curve is a curve that shows the various combinations of two goods…

Q: On a certain small island, there are only 100 units of labour (L) and 200 units of capital (K)…

A: To produce two goods A and B , endowments of inputs are  L=100 and K=200.

Q: Suppose a bakery has 14   employees to be designated as bread bakers​ (B) and cake bakers​ (C), so…

A: Production possibilities function is the locus of points of values of goods x and y that is the…

Q: Evidence accumulates that the use of chemical fertilizers, which increases agricultural production…

A: A production possibility frontier represents the locus of all maximum combinations of two goods or…

Q: Explain three different kinds of economic systems. Explain the Law of Diminishing Returns and…

A: Question 1) An economic system refers to the set of rules and regulation or a mechanism which is…

Q: Fully discuss how the production possibility frontier demonstrates the basic economic problem of…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: Assume an economy producing only two goods (shoes and computers) with a fixed amount of productive…

A: i. Production possibility frontier represents all possible combination of two goods that an economy…

Q: The ________ production points on a production possibilities frontier are the points on and inside…

A: Production possibility frontier (PPF) refers to the curve that shows the combination of goods which…

Q: Consider Robinson Crusoe who lives alone on the island. He can produce two good eggs (good X) and…

A: A production–possibility frontier (PPF) is a graphical representation of all possible output options…

Q: supply

A: The generated demand by the consumers with given prices at a given duration depicts demand. The…

Q: “How to allocate limited resources in an efficient way (as emphasized in an introductory economics…

A: Economic resources are scarce or limited. When we talk about scarcity, we must allocate the…

Q: Cleo is the most productive programmer in his city, so she makes a living writing computer programs.…

A: In an economy, a specfiic term is used to define specfiic economic concept such as equilibrium,…

Q: Which of the following is a use of the production possibility curve (PPC) in macroeconomics? O a.…

A: The production possibilities curve “is a frontier between all combinations of products that can be…

Q: Production inefficiency occurs when production ____. is at any attainable point is at a point on…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Where are you producing relative to the Production Possibilities Frontier? (On, Below, or Above)…

A: Scarcity is the primary problem of an economy because resources in every economy are limited and can…

Q: An economy will be operating on a point inside of its production possibilities frontier if there is…

A: The production possibility curve is defined as a curve which shows various combinations of two goods…

Q: ncy takes place at every point along the production possibilities frontier.

A: The production possibility model shows the trade-offs associated with allocating resources between…

Q: Assume an economy producing only two goods (shoes and computers) with a fixed amount of productive…

A: Given that: Two goods- Shoes and computers. Diminishing marginal returns the opportunity cost of…

Q: Using the appropriate diagram(s), explain briefly why the third general equilibrium efficiency…

A: (Q) Using the appropriate diagram(s), explain briefly why the third general equilibrium efficiency…

Q: Is opportunity cost inevitable in the concept of production possibilities frontier? Justify your…

A: Production possibility frontier shows  the different combination levels of two commodities which can…

Q: In market economies, firms rarely worry about the availability of inputs to produce their products,…

A: In market economies, buyers of inputs are aware of the fact that sellers are willing to earn…

Q: Discuss in detail the production possibility curve by linking that to the concept of…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: In the capitalist economic system, the individuals through the forces of demand and supply interact…

A: In a capitalist economy, resources are owned and controlled by industrialist private owners. Though…

Q: Using an appropriate diagram, explain how the production possibility frontier becomes a model of…

A: Production Possibility Curve (PPC) or Production Possibility Frontier may be defined as a curve…

Q: Discuss with help of a production possibility curve, how resource allocation decisions are made and…

A: Opportunity cost refers to the opportunity lost. It is the foregone benefit to because of choosing…

Q: Why is it inefficient for an economy to be inside the production possibilities frontier?

A: The production possibility frontier shows the relationship between what an economy can produce…

Q: Why is the production possibility frontier concave? Be sure to explain economic intuition behind…

A: # Lets first consider the concept of the production possibility frontier. PPF is a locus of bundles…

Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.