ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 2, Problem 3.5P
To determine
(a)
Plot the
Concept Introduction:
Production productivity frontier: It is a curve which shows the maximum possible output of two goods with the given set of efficiently used inputs.
To determine
(b)
The cost of producing an additional car when
Concept Introduction:
Production productivity frontier: It is a curve which shows the maximum possible output of two goods with the given set of efficiently used inputs.
To determine
(c)
The cost of producing an additional car when
Concept Introduction:
Production productivity frontier: It is a curve which shows the maximum possible output of two goods with the given set of efficiently used inputs.
To determine
(d)
The cost of producing an additional washing machine when
Concept Introduction:
Production productivity frontier: It is a curve which shows the maximum possible output of two goods with the given set of efficiently used inputs.
To determine
(e)
What is derived about the concept of
Concept Introduction:
Production productivity frontier: It is a curve which shows the maximum possible output of two goods with the given set of efficiently used inputs.
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(Shape of the PPF) Suppose a production possibilitiesfrontier includes the following combinations:Cars Washing Machines0 1,000100 600200 0a. Graph the PPF, assuming that it has no curvedsegments.b. What is the cost of producing an additional car when50 cars are being produced?
A production possibilities table for bananas and apples is shown below:
Production Alternatives
Type of Production
A
D
E
Bananas (pounds)
20
40
60
80
Apples (pounds)
100
75
50
25
a. Show these data graphically.
Instructions: Use the tool provided 'PPC' to draw a PPC curve (plot 5 points total).
125
Tools
100
PPC
75
50
25
20
40
60
80
100
Bananas (in pounds)
Apples (in pounds)
Other goods and services (millions of units)
5-
Malaria can be controlled
The World Health Organization's malaria chief says that it is too costly to
try to fully eradicate the disease. He says that by using nets, medicine,
and DDT it is possible to eliminate 90 percent of malaria cases. But to
eliminate 100 percent of cases would be extremely costly.
4-
Source: The New York Times, March 4, 2008
3-
Make a graph of the production possibilities frontier with malaria control
on the x-axis and other goods and services on the y-axis.
2-
1-
Draw a graph of the PPF that shows the tradeoff between the production
of other goods and services and malaria control in a country that has
malaria. Label the curve.
0-
10 20
30
40 50
60
70
80
90
100
Malaria control (percent of cases eliminated)
>>> Draw only the objects specified in the question.
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- A production possibilities table for bananas and apples is shown below: Production Alternatives Type of Production A B D E Bananas (pounds) 20 40 60 80 Apples (pounds) 100 75 50 25 a. Show these data graphically. Instructions: Use the tool provided 'PPC' to draw a PPC curve (plot 5 points total). 125 Tools 100 PPC 75 50 25 20 40 60 80 100 (in pounds) Instructions: In part c, round your answers to 2 decimal places. b. Does the economy above demonstrate the law of increasing opportunity cost? |(Click to select) c. Based on this information, what is the opportunity cost of a pound of apples? pound(s) of bananas What is the opportunity cost of a pound of bananas? pound(s) of apples Apples (in pounds)arrow_forwardExercise 2 Suppose that each worker in the Foreign country can produce two cars or three TVs. Assume that Foreign also has four workers. a. Graph the production possibilities frontier for the Foreign country.arrow_forwardDirection: Plot the Production Possibilities Frontier of the below-data with good X on the horizontal axis and good Y on the vertical axis. GOOD PRODUCTION ALTERNATIVES A B C D E X 0 15 18 21 24 Y 45 42 37 27 0 Question: Explain the different points on the curve. What does each point represent? Why is it important for an economy to be on its production possibilities frontier?arrow_forward
- Firm A Firm B 18- 14- 16 14- 12 10- 12 8 10- B. 8- 6- 4- 2- 2- 10 12 14 16 18 20 22 10 Corn Corn Part A What is the opportunity cost of one unit of barley for Firm A?O What is the opportunity cost of one unit of barley for Firm B? Give your answers as fractions. Part B What is the opportunity cost of one unit of corn for Firm A? What is the opportunity cost of one unit of corn for Firm B? Give your answers as fractions. Part C In which good does Firm A have a comparative advantage? In which good does Firm B have a comparative advantage? Part D In what good or goods does Firm A have an absolute advantage? In what good or goods does Firm B have an absolute advantage? Part E Suppose Firm A and Firm B divide their time equally between the production of both goods. What will be the total production of corn? units Now suppose both firms completely specialize in the product in which they have a comparative advantage and trade with one another.arrow_forward5. China is able to produce turnips and potatoes in combinations represented by the following table. (Each number represents 1,000s of bushes.) Potatoes Production Turnips point a. B C D E b. C. points. 100 and 0 90 and 10 and 20 and 30 and 40 70 40 0 Plot the data on a production possibilities graph, labeling Can China produce a combination of 30 turnips and 24 potatoes? Draw this production point on the graph (label it F) and verbally explain. Demonstrate that China experiences increasing opportunity costs by calculating the opportunity cost of producing another potato at each production point. Explain.arrow_forwardand Applications Q3 Caroline and Frances are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer, Caroline takes 3 hours to brew a gallon of root beer and 2 hours to make a pizza. Frances takes 7 hours to brew a gallon of root beer and 5 hours to make a pizza. Caroline's opportunity cost of making a pizza is of root beer. has an absolute advantage in making pizza, and If Caroline and Frances trade foods with each other, of root beer, and Frances's opportunity cost of making a pizza has a comparative advantage in making pizza. will trade pizza in exchange for root beer. The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates of root beer per pizza. better off is of root beer, and the lowest price that makes both roommates better off isarrow_forward
- 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)arrow_forward5. Draw a Production Possibilities Graph for Toyota using the following information: A В C D E F G Trucks 20 28 35 40 43 45 Cars 54 52 49 43 35 25 Plot the combination with 30 cars and 40 trucks and label it “Y." Plot the combination with 40 cars and 50 trucks and label it "X." Explain what is happening at these points.arrow_forwardDraw the production possibilities frontier on a scale diagram, with the production of X on the horizontal axis and the production of Y on the vertical axis Annual Production of Y Annual Production of X 0 20 45 60 70 75 1300 1200 900 6:00 350 0 b. If the economy is producing 45 units of X and 900 units of Y, what is the opportunity cost of producing an extra 15 units of X. Show on graph. C. If the economy is producing 20 units of X and 800 units of Y, what is the opportunity cost of producing an extra 10 units of X. Show on graph.arrow_forward
- Table Zoom A country has the following production possibilities table: Resources devoted Output of clothing Resources devoted Output of food to clothing to food 100% 20 0% 80 16 20 60 12 40 9. 40 8. 60 12 20 80 14 0. 0. 100 15 a. Graph the country's production possibilities curve. Be sure to label all parts of your graph. b. Say the country gets better at the production of food only. What will happen to the production possibilities curve? Demonstrate on your graph. c. Define increasing marginal opportunity costs. Now restate the definition in your own words. 2. X-Ray Machines .warrow_forwardcould someone draw a graph on paper please? a. Using one of the graphing tools described in the directions, plot the Production Possibilities Curve for Teavana. b. Find the combination of Jade Citrus Mint Tea and Spiced Apple Cider of 47 Jade Citrus Mint Tea and 35 Spiced Apple Cider. Label this point F. What term best describes this point? c. Find the combination of Jade Citrus Mint Tea and Spiced Apple Cider of 16 Jade Citrus Mint Tea and 20 Spiced Apple Cider. Label this point G. What term best describes this point?arrow_forwardA) 1/2 hour (B) 6 hours 1/16 hour CASHEWS (Pounds) D) 2 hours 400 360 320 280 240 200 160 120 80 40 Brazil's PPF Refer to Figure 3B. If the production possibilities frontier shown is for 16 hours of production, then how long does it take this country to make one pound of peanuts? 1 2 3 4 5 6 7 PEANUTS (Pounds) 8 9 10arrow_forward
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