Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 15APA
(a)
To determine
Draw the
(b)
To determine
Draw the MC and MB curves for B&M retailers and the online retailers before and after the availability of internet.
(c)
To determine
Identify the changes in the production possibilities and preferences.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Use the PPF to answer the following questions:
D.
Hard drives
A
525
E.
450
400
350
300
250
200
150
100
50
5 10 15 20 25 30 35 40 45 50
Sweaters
(thousands)
3. A farm grows wheat and produces pork. The marginal cost of producing each of these products
increases as more of it is produced.
a. Make a graph that illustrates the farm's PPF.
b. The farm adopts a new technology that allows it to use fewer resources to fatten pigs. Use your graph
to illustrate the impact of the new technology on the farm's PPF.
c. With the farm using the new technology described in part (b), has the opportunity cost of producing a
ton of wheat increased, decreased, or remained the same? Explain and illustrate your answer.
d. Is the farm more efficient with the new technology than it was with the old one? Why?
Tom and Abby produce rackets and balls.
The graphs show their production
possibilities.
Tom uses all his resources and produces
2 rackets and 20 balls an hour. Abby uses
all her resources and produces 2 rackets
and 40 balls an hour.
40-
30-
20-
10-
0+
0
80-
60-
40-
20-
Balls (per hour)
0+
Tom's PPF
1 2 3 4
Rackets (per hour)
Balls (per hour)
Abby's PPF
3 4 5
1
2
Rackets (per hour)
5
If Tom and Abby specialize and then trade balls and rackets at 15 balls per 1 racket,
A. Tom gains 2 rackets while Abby gains 40 balls an hour
B. Tom gains 10 balls while Abby gains 1 racket and 15 balls an hour
C. Tom gains 1 racket and 15 balls while Abby gains 10 balls an hour
D. Tom gains 10 balls and Abby gains 10 balls an hour
O E. together they gain 80 balls and 4 rackets an hour
o
N
Chapter 2 Solutions
Macroeconomics
Ch. 2.1 - Prob. 1RQCh. 2.1 - Prob. 2RQCh. 2.1 - Prob. 3RQCh. 2.1 - Prob. 4RQCh. 2.1 - Prob. 5RQCh. 2.1 - Prob. 6RQCh. 2.2 - Prob. 1RQCh. 2.2 - Prob. 2RQCh. 2.2 - Prob. 3RQCh. 2.2 - Prob. 4RQ
Ch. 2.2 - Prob. 5RQCh. 2.3 - Prob. 1RQCh. 2.3 - Prob. 2RQCh. 2.3 - Prob. 3RQCh. 2.3 - Prob. 4RQCh. 2.3 - Prob. 5RQCh. 2.3 - Prob. 6RQCh. 2.3 - Prob. 7RQCh. 2.4 - Prob. 1RQCh. 2.4 - Prob. 2RQCh. 2.4 - Prob. 3RQCh. 2.4 - Prob. 4RQCh. 2.4 - Prob. 5RQCh. 2.4 - Prob. 6RQCh. 2.4 - Prob. 7RQCh. 2.5 - Prob. 1RQCh. 2.5 - Prob. 2RQCh. 2.5 - Prob. 3RQCh. 2 - Prob. 1SPACh. 2 - Prob. 2SPACh. 2 - Prob. 3SPACh. 2 - Prob. 4SPACh. 2 - Prob. 5SPACh. 2 - Prob. 6SPACh. 2 - Prob. 7SPACh. 2 - Prob. 8SPACh. 2 - Prob. 9SPACh. 2 - Prob. 10SPACh. 2 - Prob. 11APACh. 2 - Prob. 12APACh. 2 - Prob. 13APACh. 2 - Prob. 14APACh. 2 - Prob. 15APACh. 2 - Prob. 16APACh. 2 - Prob. 17APACh. 2 - Prob. 18APACh. 2 - Prob. 19APACh. 2 - Prob. 20APACh. 2 - Prob. 21APACh. 2 - Prob. 22APACh. 2 - Prob. 23APACh. 2 - Prob. 24APACh. 2 - Prob. 25APA
Knowledge Booster
Similar questions
- Carmen and Dennis live on a desolate island. They spend their days fishing or climbing trees to collect coconuts. The following table shows how much of each activity Carmen and Dennis can produce for each hour of work. They each can work up to 12 hours a day. Fish per hour Coconuts per hour Carmen 40 8 Dennis 28 7 On a piece of paper, draw Carmen's PPF with fish on the horizontal (x) axis and coconuts on the vertical (y) axis. Carment's PPF extends from Question Blank 1 of 9 to Question Blank 2 of 9. (Hint: your answer should be in the form of a point (x,y).) Question Blank 3 of 9 has an absolute advantage in the production of fish, and Question Blank 4 of 9 has an absolute advantage in the production of coconuts. Carmen's opportunity cost of producing 1 coconut is Question Blank 5 of 9 fish, while Dennis' opportunity cost of producing 1 coconut is Question Blank 6 of 9 fish. Because Carmen has a Question Blank 7 of 9 opportunity cost of producing…arrow_forwardPlease give detailed instructions on how to graph electronically using MS ppt, excel, google slides, google sheets. You may choose one from the softwares. There are six (6) graphs that you will teach me how to graph electronically 1. How to plot Production Possibilities Curve with feasible set in MICROSOFT Powerpoint ot Excel? Alternative Food Clothing (x) (y) A 0 15 B 1 14 C 2 12 D 3 9 E 4 5 F 5 0 Instructions for tutor: please share a google sheets or slides link here so i can view the graph; don't just share picture in jpg format because I dont need it. We have a reference book and I can see the jpg picture of the graph there. i know how to plot manually using graphing paper, i want to learn how to plot electronically. Please see attached photo for the feasible set. Please include it in the graph. Search on Google on how to do feasible set electronicallyarrow_forwardEcon 444-02 (Corporate Economics), Fall 2015Problem Set #2Due in class Thursday, September 24Problem 1. Alice and Barbra sell used CDs at music festivals. Each is decidingwhether or not to set up their booth at the last festival of the summer. The festivalis scheduled to take place in Alton, very near where Alice lives. It will cost her only$30 to travel the festival. Barbra is farther away, and it will cost her $100 to travelto Alton. Both Alice and Barbra would prefer to be only CD sellers at the festival,since they would avoid competition. If only one seller is at the festival, she will make$150 during the day (not counting travel costs). If both Barbra and Alice sell CDsat the festival, they will lower their prices and each make $50 during the day. BothAlice and Barbra receive $0 for not attending the festival.1. Draw the Normal Form of the game Alice and Bob are playing, be sure to labelthe game completely.2. Does either player have a dominant strategy? If so, what is it?3. List…arrow_forward
- The table provides information about the production possibilities of a firm that produces bed linens. Quilts (per hour) Possibility A B C Pillows (per hour) 0 8 and and and 16 12 0 Draw points that show the three possibilities defined by the table. Label them A. B. and C. Draw the firm's PPF by connecting the points. Label it. Along this PPF, the quantities of A. all goods other than pillows and quilts are increasing OB. all goods other than pillows and quilts remain constant OC. pillows and quilts are either increasing or decreasing, so there is no scarcity OD. all goods other than pillows and quilts are decreasingarrow_forwardThe graph contains information on candy bar consumption and production in the economy. What is the quantity that yields allocative efficiency, or the optimal allocation of Marginal benefit (MB) and marginal cost (MC) 10% MC candy bars? 9. 8. quantity of candy.bars: 3 MB SRPC 100 200 300 400 500 600 700 Quantity Classify the reasons that may contribute to the irrationability of people. May contribute to irrationality Likely does not contribute to irrationality transitivity overconfidence fairness weighing observations differently time screening reluctance to change mind signaling Answer Bank 2.arrow_forward个 The table shows Frigidia's production possibilities. Fish (pounds per month) 300 200 100 0 Draw the four points defined in the table. Use the four-point line tool to draw the PPF. Label it. and and and and Skis (pairs per month) 0 50 100 150 If Frigidia produces 200 pounds of fish per month, how many pairs of skis must it produce to achieve production efficiency? Frigidia must produce pairs of skis to achieve production efficiency. What is Frigidia's opportunity cost of producing 1 pound of fish and 1 pair of skis? pairs of The opportunity cost of 1 pound of fish is skis 300- 250 200- Fish (pounds per month) 150- 100- 50- 25 50 75 100 125 Skis (pairs per month) 150 17!arrow_forward
- 1. Assume you are on an iceland, where you can produce different combinations of coconuts and fish that can be harvested in a given week. The table below shows these combinations. Notice that you can produce either all crabs, all pineapples, or a mix of the two. Coconuts Fish 25 3 15 4 12 5 a) Draw PPF using the information from this table; b) Calculate opportunity cost of coconuts if you decide to increase their harvest from 3 to 5; c) Calculate the slope of the PPF if you increase their harvest from 3 to 5; d) Will you harvest 5 coconuts and 12 fish on any day of the week? Why? e) Will you harvest 5 coconuts and 4 fish on any day of the week? Why?arrow_forward2. Comparative and absolute advantage Gilberto and Juanita are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of rye and corn each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to produce rye on some of the land and com on the rest. Rye Corn (Bushels per acre) (Bushels per acre) Gilberto 12 Juanita 18 On the following graph, use the blue line (circle symbol) to plot Gilberto's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Juanita's PPF. 120 108 Gilberto's PPF 96 84 72 Juanita's PPF 60 48 36 24 12 60 120 180 240 300 360 420 480 540 600 RYE (Bushels) - has an absolute advantage in the production of rye, and v has an absolute advantage in the production of corn. Gilberto's opportunity cost of producing 1 bushel of corn is bushels of rye, whereas Juanita's opportunity cost of producing 1 bushel of corn is bushels of rye. Because…arrow_forwardQuestion 1 What does the Production Possibilities Frontier of a firm show and how does it relate to scarcity and budgeting? Draw the Production Possibilities Frontier for a firm producing two goods, and explain what the various positions in the diagram mean.arrow_forward
- a. Can point D be produced? Why?. b. What variable might shift the curve PPC1 to PPC2? What would cause the curves to meet at 40,000 quantities of butter produced? What does point E represent? C. d. Explain the movement from point A to B for the production of these two goods ?arrow_forward5. Draw a Production Possibilities Graph for Toyota using the following information: A B C E F Trucks 20 28 35 40 43 45 Cars 54 52 49 43 35 25 A. Which combination(s) on the graph are considered efficient?arrow_forwardEM.35 Which of the following is most likely to happen as an economy moves along a production possibility frontier producing more services and fewer goods? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a marginal costs of producing more services will rise, but allocative efficiency may increase. b marginal costs of producing more services will decrease, but allocative efficiency may increase. c marginal costs of producing more services will rise and allocative efficiency will decrease as a result. d marginal costs of producing more services will decrease and the allocative efficiency will increase as a result.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning