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Chrome File Edit View History Bookmarks People Window Help ワECON 104, Sec × J. Zachary King Macro Text.pdf X -Lecture Notes 1 × × Assignme С https://psu.app.box.com/s/4wgshme70d65tisgjawzo1o54psjt4o/file/384937072737 Assignment 02 (Due Jan 23) pdf Homework , Updated Jan 16, 2019 by JAMES ZACHARY KLINGENSMITH Use the following information to answer questions 1-3. Champedder Inc. produces only wine and cheese. Below are combinations of the two goods that can be produced ifall of the factors of production are fully utilized. Further, assume the company cannot add factors of production nor will there be any sort of technological improvement unless otherwise stated. Combination Wine (gallons) Cheese (pounds) 100 85 0 20 40 60 0 Draw the following PPF. Calculate the cost of moving from production combination A to combination B. Then calculate the cost of moving production from combination B to combination C. Finally, calculate the cost of moving production from combination C to combination D. Suppose that a new fermentation decreases the amount of time it takes to produce a gallon of wine. Draw a new PPF. (Note: You do not need to use any exact values for the new PPF.) 1. 2. 3.
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