production possibilities frontier
Using the production possibilities frontier below, complete the following questions.
(a) Calculate the opportunity cost of point A move to point B. (2 marks)
(b) Calculate the opportunity cost of point C move to point D. (2 marks)
(c) Illustrate and explain what would happen to the production possibilities frontier if there were a technological breakthrough in producing tubas. (4 marks)
Homework Answers
Production at Point A - 4 million automobiles & 0 cameras
Production at Point B - 3 million automobiles & 3 million cameras
Production at Point C - 2 million automobiles & 4 million cameras
Production at Point D - 1 million automobiles & 2 million cameras
a. Move from point B to point C
The nation produces 1 million cameras more but loses out 1 million automobiles
Therefore, the opportunity cost of moving from B to C = 1 million automobiles
b. Move from point B to point A
The nation produces 1 million automobiles more but loses out 3 million cameras
Therefore, the opportunity cost of moving from B to A = 3 million cameras
c. Move from point D to point B
The nation gains 2 million automobiles and 1 million cameras. The nation moves from an inefficient production scenario to an efficient one and hence, there is no opportunity cost involved in moving from point D to point B.
illustrate (draw a graph)and explain what would happen to the production possibilities frontier if there were a technological breakthrough in producing tubas.
illustrate (draw a graph)and explain what would happen to the production possibilities frontier if there were a technological breakthrough in producing tubas.
explain what would happen to the production possibilities frontier if there were a technological breakthrough
Using the production possibilities frontier above:Draw a new graph and explain what would happen to the production possibilities frontier if there were a technological breakthrough in producing tubas.
If an economy is operating inside its production possibilities frontier: A) it is producing efficiently. The...
If an economy is operating inside its production possibilities frontier: A) it is producing efficiently. The economy cannot produce more of one good without simultaneously reducing the output of another good. B) is producing inefficiently. If production was arranged more efficiently the economy can produce more on one good without sacrificing any production of another good. C) it is producing at an unattainable point. You cannot be inside the Production Possibilities Frontier. D) then opportunity cost approaches infinity. No economy...
Calculate the opportunity cost of point A move to point B.
Production at Point A - 0 Tubas & 25 dishwashers Production at Point B - 30 Tubas & 20 dishwashers Production at Point C - 50 Tubas & 10 dishwashers Production at Point D - 60 Tubas & 0 dishwashers Production at Point E - 40 Tubas & 20 dishwashers Production at Point F - 30 Tubas & 10 dishwashers Using the production possibilities frontier above:a) Calculate the opportunity cost of point A move to point B. b) Calculate the opportunity cost of point C move to...
production possibilities frontier
Explain the production efficiency in production possibilities frontier. Illustrate a graph that shows inefficient, efficient, and unattainable point on a production possibilities frontier.
(a) Draw a production possibilities frontier representing the economy's possible production of milk and eggs. Now,...
(a) Draw a production possibilities frontier representing the economy's possible production of milk and eggs. Now, show what will happen to the frontier or the production point under each of the following circumstances in parts (b) to (e). Use a separate graph to illustrate each situation. For parts (c), (d), and (e), show your answers relative to the original production possibilities frontier. (2 marks) (b) The outcome for the economy is efficient, with society choosing approximately equal amounts of milk...
Please answer both questions, with an explanation Suppose the given production possibilities frontier (PPF) graph shows...
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 ะก 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...
A small country produces only milk and hats and its production possibilities frontier is shown in...
A small country produces only milk and hats and its production
possibilities frontier is shown in the table above.
a. The nation is currently
producing at point B. What is the opportunity cost of
producing two additional gallons of milk? At point C? At
point D? What do your results show?
b. Suppose the nation is
initially producing 4 gallons of milk and 80 hats. What is the
opportunity cost of producing 2 additional gallons of milk? Explain
your answer....
(20 Marks) QUESTION With the aid of a fully labelled diagram, draw a Production Possibility Frontier (PPF) for an econo...
(20 Marks) QUESTION With the aid of a fully labelled diagram, draw a Production Possibility Frontier (PPF) for an economy producing computers and pizzas. Use the diagram to explain the concepts of choice, scarcity and opportunity costs. (10 marks) 4.1 2 With reference to the diagram in question 4.1, distinguish between 'efficiency' and 'inefficiency. (4 marks) With the aid of a separate diagram, illustrate and explain what would happen if there was a discovery of an improved technique for producing...
according to the graph of the production possibilities frontier, what is the opportunity cost of the...
according to the graph of the production possibilities
frontier, what is the opportunity cost of the second widget?
ResourcesHint Check Answer K Question 5 of 26 Consider the graph. According to the graph of the production possibilities frontier, what is the opportunity cost of the second widget? 10 O about 3 gizmos O less than 0.5 gizmos O about 2 widgets O about 7 widgets 0123 45 6789 10 What best explains the shape of the production possibility frontier in...
If an economy is operating inside its production possibilities frontier: A) it is producing efficiently. The economy cannot produce more of one good without simultaneously reducing the output of another good. B) is producing inefficiently. If production was arranged more efficiently the economy can produce more on one good without sacrificing any production of another good. C) it is producing at an unattainable point. You cannot be inside the Production Possibilities Frontier. D) then opportunity cost approaches infinity. No economy...
(a) Draw a production possibilities frontier representing the economy's possible production of milk and eggs. Now, show what will happen to the frontier or the production point under each of the following circumstances in parts (b) to (e). Use a separate graph to illustrate each situation. For parts (c), (d), and (e), show your answers relative to the original production possibilities frontier. (2 marks) (b) The outcome for the economy is efficient, with society choosing approximately equal amounts of milk...
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 ะก 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...
A small country produces only milk and hats and its production
possibilities frontier is shown in the table above.
a. The nation is currently
producing at point B. What is the opportunity cost of
producing two additional gallons of milk? At point C? At
point D? What do your results show?
b. Suppose the nation is
initially producing 4 gallons of milk and 80 hats. What is the
opportunity cost of producing 2 additional gallons of milk? Explain
your answer....
(20 Marks) QUESTION With the aid of a fully labelled diagram, draw a Production Possibility Frontier (PPF) for an economy producing computers and pizzas. Use the diagram to explain the concepts of choice, scarcity and opportunity costs. (10 marks) 4.1 2 With reference to the diagram in question 4.1, distinguish between 'efficiency' and 'inefficiency. (4 marks) With the aid of a separate diagram, illustrate and explain what would happen if there was a discovery of an improved technique for producing...
according to the graph of the production possibilities
frontier, what is the opportunity cost of the second widget?
ResourcesHint Check Answer K Question 5 of 26 Consider the graph. According to the graph of the production possibilities frontier, what is the opportunity cost of the second widget? 10 O about 3 gizmos O less than 0.5 gizmos O about 2 widgets O about 7 widgets 0123 45 6789 10 What best explains the shape of the production possibility frontier in...
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