Question

1- Homewórk Saved A production possibilities table for DVDs and computers is shown below. Production Alternatives Type of Production A Computers DVDs 20 40 60 55 35 2 80 80 esa. Show these data graphically. Instructions: Use the tool provided 'PPC' to draw a PPC curve (plot 5 points total). Tools 100 90 80 70 PPC

Answer 1

a) b) The opportunity test of the first 20 computers is 10 DVDs [As opportunity cost means what we give up to get an item. Here first production was O computer and so DVDs. And then 20 computers and 70 DVDs. So to produce 20 computer if sacrifice (50 minus 70) = 10 DVDs] c) From (E minus D) opportunity cost of DVD for 35 DVD if sacrifice = 20 computer for 35 DVD if sacrifice = 20/35 computer = 0.571 computer from (D minus C) opportunity cost of DVD - for (55 minus 35) = 20 DVD if sacrifice = 20 computer for (55 minus 35) = 20 DVD if sacrifice = 20/20 = 1 computer \r\n from (C minus B) - for (70 minus 55) = 15 DVD if sacrifice = 20 computer for (70 minus 55) = 15 DVD if sacrifice = 20/15 computer = 1.33 computer