1 - Opportunity cost = 80/4
= 20 million tons of coal
2 - Opportunity cost = 120/4
= 30 million tons of coal
3 - Greater
Trade off faced between point A and B.
The following graph shows the production possibilities frontier (PPF) of an economy that produces clothing and...
The following graph shows the production possibilities frontier (PPF) of an economy that produces clothing and steel. The black points symbols) represent three possible output levels in a given month. You can click on the points to see their exact coordinates Graph 1 32 28 24 PF 16 100 200 300 400 500 600 700 800 STEEL (Millions of tons) Suppose the economy initially produces 12,000 garments of clothing and 500 million tons of steel, which is represented by point...
The following graph shows the production possibilities frontier (PPF) of an economy that produces drinking water and oil. Points A, B, and C (X symbols) represent three possible output levels in a given month. You can place your mouse over the points to see their exact coordinates. DRINKING WATER Millions of gallons per month 800 0 10 20 30 40 50 60 70 80 OIL (Thousands of barrels per month! Help Clear All Suppose the economy initially produces 540 million...
Please answer both questions, with an explanation Suppose the given production possibilities frontier (PPF) graph shows the fictitious country of Ruritania currently producing at the point labeled Start. If a decision is reached to provide more public goods, to which point will Ruritania move? O D O c O B Start С What is the opportunity cost of that decision? O There is no opportunity cost since the economy is still producing on the PPF. Public goods The private goods...
The following graph depicts the production possibilities frontier (PPF) of a small economy that produces only two goods: coffee makers and cell phones. On the PPF, five combinations of goods are shown and labeled with the letters A through E. Refer to the graph to answer the questions that follow. (Hint: You can click on any of the five points to view the coordinates of that point.) CELL PHONES COFFEE MAKERS Given the number of coffee makers produced, fill in...
1. Specialization and production possibilities Suppose Bulgaria produces only tablets and smartphones. The resources that are used in the production of these two goods are not specialized--that is, the same set of resources is equally useful in producing both smartphones and tablets The shape of Bulgaria's production possibilities frontier (PPF) should reflect the fact that as Bulgaria produces more smartphones and fewer tablets, the opportunity cost of producing each additional smartphone The following graphs show two possible PPFs for Bulgaria's...
Below is a production possibilities table for cars an corn in a small town. Good produced Cars Corn (tons) Production Alternatives А ТВ Тc TD 0 6 12 18 50 45 35 L 20 24 0 a. Graph a production possibilities curve/frontier for this town. b. Does this PPF demonstrate the law of increasing opportunity costs? Why or why not? C. If the economy is at point B, what is the opportunity cost of producing 6 more cars? What is...
Opportunity cost is evident on the production possibilities frontier (PPF) graph as we move from one unattainable point to an efficient point on the frontier. as we move from an inefficient point to the origin. as we move from one point on the frontier to another point on the frontier. at any one single point on the graph. as we move from the origin to any inefficient point.
The graph below shows Tanya’s weekly production possibilities frontier for doing homework (writing papers and doing problem sets). The vertical intercept (point A) is 8, and the horizontal intercept (point B) is 4. a. The slope of the production possibilities frontier is . b. The opportunity cost of doing one problem set is . c. The opportunity cost of writing one paper is . Production possibilities frontier Problem sets PPF Papers
The figure shows an increase in resources that shifts the production possibilities frontier from PPF, to PPF2. For someone producing only wings, what is the change in opportunity cost compared with producing only pizza?