Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 9SPA
(a)
To determine
Construct a graph that illustrates the farm’s
(b)
To determine
Identify the impacts of the new technology on the farm’s PPF.
(c)
To determine
Identify the
(d)
To determine
Identify the efficiency of the production process.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Final Year Exam: Economics
3 of 24
The definition of Product Possibility Frontier is
The graph which indicates the various production possibilities of two products when resources are fixed.
The graph that shows the highest amount of money a person can make over a period of time.
The graph that shows how supply and demand works.
The graph that tells us how well an economy is doing
ple Choice
ý the letter of the choice that best completes the statement or answers the question.
1. Which of the following is an example of lower production costs brought about by the use of technology?
the delivery costs of gasoline to the consumer by diesel trucks
the use of e-mail to replace slower surface mail
а.
b.
the making of breads and pastries in local shops rather than large bakeries
the importing of fresh vegetables from South America rather than using canned
vegetables-
с.
d.
2. What is the effect of import restrictions on prices?
They cause prices to drop.
b.
a.
They cause prices to rise.
They often cause prices to rise steeply and then drop.
d. They usually do not have any lasting effect on price.
с.
3. What do sellers do if they expect the price of goods they have for sale to increase dramatically in the
future?
sell the goods now and try to invest the money instead of resupplying
sell the goods now but try to get the higher price for them
store the goods until the…
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?
Chapter 2 Solutions
Microeconomics (13th Edition)
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
- In the attached figure, if 2 million computers are produced per year, then:a. The marginal cost of one computer exceeds the marginal benefit of one computer, so more computers must be produced.b. The marginal cost of a computer exceeds the marginal benefit of a computer, so fewer computers must be produced.c. The marginal benefit of a computer exceeds the marginal cost of a computer, so more computers must be produced.d. The marginal benefit of a computer exceeds the marginal benefit of a computer, so fewer computers must be produced.FOR EACH ALTERNATIVE, PLEASE EXPLAIN WHY IS TRUE, FALSE OR UNCERTAIN.arrow_forwardThe figure shows the production possibilities frontier for Mario's, a pizza and pasta producer. Draw a point at which the firm achieves production efficiency. Label it Efficient. Draw a point that is attainable but inefficient. Label it Inefficient. ... What does it mean to say that production is inefficient? When production is inefficient, OA. all resources are assigned to tasks for which theyare the best match OB. there is a tradeoff betweenpizza and pasta OC. the firm can produce more pastaonly by producing lesspizza D. the firm can produce more pastawithout producinglesspizza 100- 90- 80- 70- 60- 50- 40- 30- Pasta dishes (per hour) 20- 10- 0- 2 0 PPF 10 12 5 4 6 8 Pizzas (per hour) >>> Draw only the objects specified in the question.arrow_forwardFor the question below use the following figures which illustrate the production possibilities available to a farmer and a rancher with 12 hours of labour. For the farmer, the opportunity cost of 1 pound of potatoes is Select one: a. 4 pounds of meat b. 1 pound of meat c. 2 pounds of meat d. 0.5 pound of meatarrow_forward
- could 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 farm raises chickens and produces oranges. The marginal cost of producing each of these products increases as more is produced. Draw the farm's PPF. Label it PPF₁- The farm adopts a new technology that allows it to use fewer resources to feed chickens. Draw a PPF that shows the impact of the new technology. Label it PPF2. With the farm using the new technology and all its resources, has the opportunity cost of producing a tonne of oranges changed? The opportunity cost of producing a tonne of oranges has O A. not changed B. decreased O C. increased How does the farm achieve allocative efficiency now that it uses the new technology? so the farm produces The marginal cost of producing chicken has along the PPF until MC equals MB for each good. A. decreased; more chicken and moves up B. increased; more chicken and moves up C. decreased; less chicken and moves down D. increased; less chicken and moves down 10- 8- 6- 4- 2- Chicken (tonnes) 2 4 10 12 14 C 6 8 Oranges (tonnes) >>> Draw only…arrow_forwardSoybean (bushels per year) Chicken (Pounds per year) 500 0 400 300 200 500 0 600 9.) If the farm uses its resources efficiently, what is the opportunity cost of an increase in chicken production from 300 pounds to 500 pounds a year? Explain your answer.arrow_forward
- Draw a production possibilities frontier diagram for a farm able to produce corn or soybeans. What does a production possibilities frontier illustrate?arrow_forwardCom 120.000 80,000 40.000 B C A B the opportunity cost of that shift is 40,000 units of corn. 5.000 10.000 15.000 In the above graph, if the economy is currently producing at point C and then shifts production to point B, then A the economy moved from one efficient point to another efficient point. Robots moved from an inefficient point to an efficient point.arrow_forwardThe following is a table that shows the production possibilities for Good X and Good Y. Type of Production Possibilities Goods A B. D. E X 2 4 6. 8. Y 30 27 21 12 a. Show these data graphically on a piece of graph paper. b. What is the cost of producing 2 units of good X? c. What is the cost of producing 6 units of good X? d. What is the cost of increasing the production of good X from 4 to 8 units? e. What is the cost of moving from combination D to A? f. Label a point F inside the PPC. What is point F imply? g. Label a point G outside the PPC. What is point G imply? h. Label a point H on the PPC. What does point H imply? i. What does it mean when the combination moves from B to E along the same PPC? j. What is the this of PPC. Explain. 45arrow_forward
- Why is it inefficient for an economy to be inside the production possibilities frontier?arrow_forwardA farm grows wheat and produces pork. The marginal cost of producing each of these products increases as more is produced. Draw the firm's PPF. Label it PPF₁. The farm adopts a new technology that allows it to use fewer resources to fatten pigs. Draw a PPF that shows the impact of the new technology. Label it PPF₂. 10- 8- 6- 4- 2- Wheat (tons) 2 4 6 8 Pork (tons) 10 12 14 >>> Draw only the objects specified in the question.arrow_forwardDrag the production possibilities frontier on the graph to show the effects of a time saving innovation in the manufacturing of carsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub CoEconomics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning