Question

Assume four person Labor resources with each person having a different skill set in the production of the two goods.

The four people, with their listed skill endowment, include:

               Name                   Maximum individual Production

               James                  20 Birdhouses or 10 Clay Pots

               Sue                       10 Birdhouses or 20 Clay Pots

               Stan                      40 Birdhouses or 30 Clay Pots

               Carol                     30 Birdhouses or 40 Clay Pots

3)           Complete the table below by calculating the opportunity cost of producing each good for each worker.

James gives up ___ birdhouse(s) for each clay pot produced

               James gives up _____ clay pot(s) for each birdhouse produced

Sue   gives up ___ birdhouse(s) for each clay pot produced

               Sue gives up _____ clay pot(s) for each birdhouse produced

Stan  gives up ___ birdhouse(s) for each clay pot produced

               Stan gives up _____ clay pot(s) for each birdhouse produced

Carol gives up ___ birdhouse(s) for each clay pot produced

               Carol gives up _____ clay pot(s) for each birdhouse produced

4) Given the information above, draw out the Productions Possibilities Frontier (PPF).  (hint: start at an end point)

Answer 1

Jamu 20 2 bidhouues ter each tlay pot Pdd Jams proud Caype) for each bindhoue bndkouses tor aach elay pat poducal 20 90 eoch biahou poducol 2 10 lape tor aach brdhau 2ach claypot mo dutad Stan 20 2 4 8tan 40 bindhouses ter 4 30 day pet odad 30 40 bdoue ter Rach 7 Carel 40 30 daypa fer och bindhoue poduud James Pndg edhu 20 10 Stam Carel dhout 40 30 30 PPp's au lnar b caue ony baler ud ter poduction