Economic
Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His production possibilities are given in the table below: (3 Marks)
Tables
Chairs
0
200
50
180
60
160
70
140
80
120
90
0
1) Explain production possibilities frontier (PPF) by putting tables on the Horizontal axis and chairs on the vertical axis. What is Bill’s opportunity cost of producing one additional table?
2) Currently Bill is producing 70 tables and 140 chairs.
a) Is this allocation of resources efficient? Why?
b) Show this allocation on the graph and advise Bill how he can be more efficient.
Question-2
Explain by applying these concepts with examples. (2 Marks)
a. Rational people respond to incentives
b. Role of prices in allocating resources
Homework Answers
Request Answer!
We need at least 8 more requests to produce the answer.
2 / 10 have requested this problem solution
The more requests, the faster the answer.
eco
1) Explain production possibilities frontier (PPF) by putting tables on the Horizontal axis and chairs on the vertical axis. What is Bill’s opportunity cost of producing one additional table? 2) Currently Bill is producing 70 tables and 120 chairs. a) Is this allocation of resources efficient? Why?b) Show this allocation on the graph and advise Bill how he can be more efficient.Question-2 Explain by applying these concepts with examples. (2 Marks) a. Rational people respond to incentivesb. Role of prices...
Bill can produce either tables or chairs. Bill can work up to 10 hours a day....
Bill can produce either tables or
chairs. Bill can work up to 10 hours a day. His production
possibilities are given in the table below:
1. Construct the production possibilities frontier (PPF) for
Bill. Put tables on the Horizontal axis and chairs on the vertical
axis.
2. What is Bill’s opportunity cost of producing one additional
table?
3. What is Bill’s opportunity cost of producing one additional
chair?
4. Currently Bill is producing 20 tables and 40 chairs.
a. Is...
Economic models are used to reflect make assumptions about both consumer and producer behavior and in...
Economic models are used to reflect make assumptions about both consumer and producer behavior and in the case of the Production Possibilities Frontier (PPF) to show the concepts of opportunity cost, trade-offs, and scarcity. Please reflect on and explain a "real-world" application of the PPF for your scarce resources associated with a scenario where you could spend your time (labor input), equipment (physical capital), and natural resources to allocate resources between two production options. For example, on page 32 of...
FUNDAMENTALS IN-CLASS WORKSHEET 2 This question examines the production possibilities of an individual, Nicolas. You will...
FUNDAMENTALS IN-CLASS WORKSHEET 2 This question examines the production possibilities of an individual, Nicolas. You will construct the production possibilities frontier (PPF) for Nicolas and identify his opportunity cost of producing different goods. Nicolas can use his limited resources to produce only rings and necklaces. Below, you are provided with feasible combinations of rings and necklaces that Nicolas can produce, and that employ all of his productive resources. Rings Necklaces 0 8 3 6 6 4 9 2 12 0...
Suppose you are a farmer with 20 hectares of land on which you could grow either...
Suppose you are a farmer with 20 hectares of land on which you could grow either wheat or barley. You can allocate however much land you want to each crop. a) Draw a Production Possibilities Frontier depicting this situation. b) Explain what a Production Possibilities Frontier is and what the diagram represents, including what points on, below and above the PPF represent. c) Explain why the PPF that you have drawn has the shape that it does. d) Is it...
Suppose you are a farmer with 20 hectares of land on which you could grow either...
Suppose you are a farmer with 20 hectares of land on which you could grow either wheat or barley. You can allocate however much land you want to each crop. a) Draw a Production Possibilities Frontier depicting this situation. b) Explain what a Production Possibilities Frontier is and what the diagram represents, including what points on, below and above the PPF represent. c) Explain why the PPF that you have drawn has the shape that it does. d) Is it...
4. Problems and Applications Q4 An economy consists of three workers: Carlos, Felix, and Larry. Each...
4. Problems and Applications Q4 An economy consists of three workers: Carlos, Felix, and Larry. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Carlos can either mow 2 lawns or wash 1 car; Felix can either mow 1 lawn or wash 1 car; and Larry can either mow 1 lawn or wash2 cars. For each of the scenarios listed in the following table, determine how many lawns will be...
FUNDAMENTALS IN-CLASS WORKSHEET 1 This question examines the production possibilities of a small country, Millsville. You...
FUNDAMENTALS IN-CLASS WORKSHEET 1 This question examines the production possibilities of a small country, Millsville. You will construct the production possibilities frontier (PPF) for Millsville and identify its opportunity cost of producing different goods. Millsville can use its limited resources to produce only applesauce and apple juice. Below, you are provided with feasible combinations of applesauce and apple juice that Millsville can produce, and that employ all of Millsville’s productive resources. Applesauce (jars) Apple Juice (bottles) 5 0 4 2...
FUNDAMENTALS IN-CLASS WORKSHEET 1 This question examines the production possibilities of a small country, Millsville. You...
FUNDAMENTALS IN-CLASS WORKSHEET 1 This question examines the production possibilities of a small country, Millsville. You will construct the production possibilities frontier (PPF) for Millsville and identify its opportunity cost of producing different goods. Millsville can use its limited resources to produce only applesauce and apple juice. Below, you are provided with feasible combinations of applesauce and apple juice that Millsville can produce, and that employ all of Millsville’s productive resources. Applesauce (jars) Apple Juice (bottles) 5 0 4 2...
Marginal cost is the opportunity cost of a good or service divided by the number of...
Marginal cost is the opportunity cost of a good or service divided by the number of units produced. of a good or service that exceeds its benefit. that your activity imposes on someone else. that arises from producing one more unit of a good or service. The law of demand implies that demand curves shift leftward whenever the price rises. slope down. shift rightward whenever the price rises. slope up. If the United States can increase its production of automobiles...
Bill can produce either tables or
chairs. Bill can work up to 10 hours a day. His production
possibilities are given in the table below:
1. Construct the production possibilities frontier (PPF) for
Bill. Put tables on the Horizontal axis and chairs on the vertical
axis.
2. What is Bill’s opportunity cost of producing one additional
table?
3. What is Bill’s opportunity cost of producing one additional
chair?
4. Currently Bill is producing 20 tables and 40 chairs.
a. Is...
Economic models are used to reflect make assumptions about both consumer and producer behavior and in the case of the Production Possibilities Frontier (PPF) to show the concepts of opportunity cost, trade-offs, and scarcity. Please reflect on and explain a "real-world" application of the PPF for your scarce resources associated with a scenario where you could spend your time (labor input), equipment (physical capital), and natural resources to allocate resources between two production options. For example, on page 32 of...
4. Problems and Applications Q4 An economy consists of three workers: Carlos, Felix, and Larry. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Carlos can either mow 2 lawns or wash 1 car; Felix can either mow 1 lawn or wash 1 car; and Larry can either mow 1 lawn or wash2 cars. For each of the scenarios listed in the following table, determine how many lawns will be...
Most questions answered within 3 hours.
-
Calculate the pH of each of the following solutions.
0.50 M HBr
3.1×10−4 M KOH
4.2×10−5...
asked 3 hours ago -
For the year ended December 31, Depot Max’s cost of merchandise
sold was $85,600. Inventory at the...
asked 3 hours ago -
Week 10 - Professional Memo Assignment
Professional Memo Assignment
Your mission for this week, should you...
asked 3 hours ago -
Write a Python program that stores the data for each
player on the team, and it...
asked 3 hours ago -
In
the last 3 months, mike never knows when he is going to get his
allowance...
asked 3 hours ago -
Is Ca(OH)2 a Bronsted base, Lewis base, or both? Why?
asked 3 hours ago -
1A- Why don’t voters complain about U.S. tariffs on imported
sugar?
Because sugar is only a...
asked 3 hours ago -
Cash Payback Period
Primera Banco is evaluating two capital investment proposals for
a drive-up ATM kiosk,...
asked 3 hours ago -
Create a button in Swift (Xcode) that will create a charge,
create a charge using Stripe's...
asked 3 hours ago -
The reaction rate of CO and NO2 in the reaction
CO(g) + NO2(g) → CO2(g) +...
asked 3 hours ago -
Imagine that a chemist puts 6.40 mol each of
C3H8 and O2 in a 1.00-L container...
asked 4 hours ago -
How much money should be invested today in order to have $8340
at the end of...
asked 4 hours ago