Question

Please just explained as I already know the answers!!!!!

since I don’t know the correlation or relationship on this problem at it has many ways to approach it

a) do the graph and explain...

b) answer is 3tvs but explain...

c) answer is 10 units but explain...

1. Suppose either computers or televisions can be assembled with the following labor inputs: Units produced 1 Total labor used3 10 90 7 7 12 18 25 33 42 54 70 (a) (b) (c) Draw the production possibilities curve for an economy with 54 units of labor. Label it P54. What is the opportunity cost of the eighth computer? Suppose immigration brings in 36 more workers. Redraw the production possibilities curve to reflect this added labor. Label the new curve P90.

Answer 1

1) With 54 units of labor this economy can produce either 8 computers and no televisions or 8 televisions and no computers (and also many combinations in between). It is shown as P54

2) When the eighth computer is produced, it need the addition of 12 more units (54-42) of labor into the production process. With these last 12 units of labor, three televisions could have been produced. Because as per table 3 units of televisions can be produced with 12 units of labor. It depicted as in the graph

3) When immigration brings in 36 more workers, this economy now has 90 units of labor available (= 54 + 36). Thus now economy has the ability to produce either 10 computers and no televisions or 10 televisions and no computers (and also many combinations in between). Because as per table 10 units of televisions can be produced with 90 units of labor. It is shown as P70