2. A feasible production combination for a firm producing two outputs must be (a) Outside the production possibilities frontier(PPF) (b) Inside the PPF (c) (a) or (b) d) On the PPF at the point of tangency with the iso-revenue line

2. A feasible production combination for a firm producing two outputs must be (a) Outside the production possibilities frontier(PPF) (b) Inside the PPF (c) (a) or (b) d) On the PPF at the point of tangency with the iso-revenue line

Survey of Economics (MindTap Course List)

9th Edition

ISBN:9781305260948

Author:Irvin B. Tucker

Publisher:Irvin B. Tucker

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 18SQ

See similar textbooks

Related questions

Q: What is production efficiency and product mix efficiency? What is the main condition for each type…

A: Production efficiency is a financial/economic term portraying a level in which an economy or element…

Q: Alec and Ellie are the only detectives in the town of Broadchurch. They work together. Assume…

A: Answer: Given, Number of hours each person has = 10 hours in a day Name of person Number of hours…

Q: Exhibit 2-4: Firm X's Points of Production on Its PPF Points A C D Capital Goods (K) 50.00 45.00…

A: Opportunity cost refers to the amount of good forgone to consume or produce an additional unit of…

Q: Which of the following are the assumptions of the production possibility curve? a. All of the…

A: Production possibility curve shows different combinations of two goods that can be produced with…

Q: Which of the following combinations of meat and potatoes could the rancher not produce in 24 hours?…

A: The following table contains information about the units of meat and potatoes produced by farmer and…

Q: what is command economy? and give discussion on command economy advantages and disadvantages ?

A: A command economy is a mechanism in which the government, rather than the free market, decides what…

Q: The table below represents the combinations of beef and corn produced on a tract of land of a given…

A: Outward shift of the PPF is only possible when there is increase in the given resources or…

Q: Suppose that Alexi and Tony can sell all their street tacos for $3.50 each and all their Cuban…

A: Tony is spending 20 hours per week on the production of Street Tacos at the rate of 60 Street Tacos…

Q: Need help with number 2

A: We will answer the first question as the exact one wasn't specified. Please submit the specified…

Q: Assume Heisestan is currently producing at point C ( 7 housing and 20 food) on the PPF. What is the…

A: The production possibility frontier curve illustrates the variations in the amounts which could in…

Q: Assume that Derryland and Whetonia can switch between producing cheese and producing bread at a…

A: Opportunity cost refers to the loss incurred by giving up next best alternative while making a…

Q: What would a straight-line production possibilities frontier between grape juice and apple juice on…

A: (Since you have posted multiple questions, we will answer the first one for you. If you want a…

Q: Country Corn Jeans (Bushels per hour of labor) (Pairs per hour of labor) Euphoria 8 32 Contente 12…

A: Before specialization, they cannot maximize. But after specialization, they will go for comparative…

Q: Alec and Ellie are the only detectives in the town of Broadchurch. They work together. Assume…

A: Answer: Given, Name Production of interviews in 2 hours Production of files of paperwork in 2…

Q: Refer to Figure 2-1(below). Along the production possibilities frontier, the most efficient point of…

A: Production possibility frontier: - it is the graphical representation of different combinations of…

Q: How prices allocate resources Suppose that there are three beachfront parcels of land available for…

A: Demand for a commodity is the desire backed by the ability and willingness of the consumers to buy…

Q: Tim and Alyssa are farmers. Each one owns a 12-acre plot of land. The following table shows the…

A: Tim produces 18 Alfalfa and 6 Barley. Alyssa produces 28 Alfalfa and 7 Barley.

Q: Q11. Refer to Figure 1. Along the production possibilities frontier, the most efficient point of…

A: Production Possibility Frontier is a curve which shows the locus of different combinations of two…

Q: 2. Who has the lowest opportunity cost? Latasha and Jake need to decide which one of them will take…

A: This will be solved through a formula given below:

Q: Assume that Derryland and Whetonia can switch between producing cheese and producing bread at a…

A: Comparative advantage basically refers to an economy's ability to produce a certain item or service…

Q: Which technique is economically most efficient in producing A?

A: We are given various combinations of labor and capital that can produce 15 units of Product A. In…

Q: The definition of Product Possibility Frontier is The graph which indicates the various production…

A: The definition of product possibility frontier is the graph which indicates the various production…

Q: 1. Refer to the production possibilities schedule below assuming full employment. Combination G F E…

Q: Ql: Shortly define the following terms with examples. 1. Tradeoffs 2. Economic Efficiency 3. Mixed…

A: Economics is a discipline that involves all the possible terminologies that cater to the economic…

Q: 1. Name three combinations of corn and soybean that would be on the line, on the Production…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: 1. Ramon and Sammy are working on a group homework assignment. The homework consists of a set of…

Q: Meghan and Jackson are both gardeners producing carrots and tomatoes. The table below compares their…

A: The term of trade is lie between opportunity cost of the good.

Q: What does a Production Possibility Frontier for Product X versus Y represent? A) The total combined…

A: Because individuals have limited resources at their disposal, the problem of scarcity requires them…

Q: slope of the production possibilities frontier illustrates: The demand for the products shown. The…

A: opportunity cost measures the trade-off between two goods.

Q: Question 14 The illustrates the various combinations of output that a society can produce if all of…

A: In economics, different models and theories explain different types economic concepts such as…

Q: Assume that the farmer and the rancher each has 24 labor hours available. If each person divides his…

A: The following table contains information about the units of meat and potatoes produced by farmer and…

Q: 12. How are money cost and opportunity cost related to each other? a. Opportunity cost must…

A: We know that Money cost is the nominal cost that is incurred in the process of generating output. It…

Q: Answer the question based on the following information: Suppose 10 units of product X can be…

A: Given: By employing different techniques of labor and capital 10 units of product X can be produced.…

Q: Answer the question based on the following information: Suppose 10 units of product X can be…

A: Total expense alludes to the absolute cost brought about in arriving at a specific degree of yield;…

Q: Suppose two countries, France and Germany, use only capital and labor for production. Factor…

A: The factor endowment theory holds that countries are likely to be rich in various types of…

Q: The table below represents the combinations of beef and corn produced on a tract of land of a given…

A: Production possibility frontier shows the combination of production of two different goods at a…

Q: 3o A feasible production combination for a firm producing two outputs must be Outside the production…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Bonnie and Clyde are next-door neighbors. Both have identical yards with identical pools, The table…

Q: How are money cost and opportunity cost related to each other? a. Opportunity cost must always…

A: Money cost is the nominal cost that is incurred in the process of generating output. It is…

Q: 5Look at the following production possibilities curve illustrating the possibilities in Sluggerville…

A: Production Possibility Curve (PPC) In the above given graphical presentation, Production…

Q: Explain the concept of increasing-opportunity-cost with constant returns to scale. In your answer,…

A: It is the cost of the next best alternative forgone. In other words how many units we are ready to…

Q: 39. A feasible prod producing two outputs must be a Outside the production possibilities…

A: A feasible production combination for a firm is when it maximizes its total revenue

Q: The table below shows three different technologies used to produce various levels of output. Output…

A: Technology refers to the e use of tools, machines, materials, techniques and sources of power to…

Q: Assume that Derryland and Whetonia can switch between producing cheese and producing bread at a…

A: The next best option is frequently referred to as the opportunity cost. It's also known as the…

Q: Consider Babs and Donna, who can each produce cake, beer, or some combination of the two using only…

A: In economics, opportunity cost represents one's sacrifice or foregone income when he choose an…

Q: A feasible production combination for a firm producing two outputs must be Outside the production…

A: A Production Possibility Frontier can be defined as a combination of different bundles of two goods…

Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

2. A feasible production combination for a firm producing two outputs must be
(a) Outside the production possibilities frontier(PPF)
(b) Inside the PPF
(c) (a) or (b)
d) On the PPF at the point of tangency with the iso-revenue line

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

12. How are money cost and opportunity cost related to each other? a. Opportunity cost must always exceed money cost. b. They are always identical in any economic system. c. If markets function well, they are closely related. d. In a market economy, they must be equal to each other. e. Money cost is greater than or equal to opportunity cost.
Steve and Craig have been shipwrecked on a deserted island in the South Pacific. Their economic activity consists of either gathering pineapples or fishing. We know Steve can catch four fish in one hour or harvest two baskets of pineapples. In the same time Craig can reel in two fish or harvest two baskets of pineapples. Assume Craig and Steve both operate on straight-line production possibilities curves. What is Steve's opportunity cost of producing a basket of pineapples? Of a producing a fish? What is Craig's opportunity cost of producing a basket of pineapples? Of a producing a fish?
Tim and Alyssa are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of the land and barley on the rest. Plot the Product Possibilities Frontier of Alyssa and the Product Possibilities Frontier of Tim.
What is one industry, firm, or product that has disappeared from the market as a result of allocative efficiency and creative destruction and replaced by another industry, firm, or product? And what are some pros and cons?
Table 3-7Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate. Labor Hours Needed to Make 1 Pound of Pounds Produced in 24 Hours Meat Potatoes Meat Potatoes Farmer 6 4 4 6 Rancher 3 8 8 3 Refer to Table 3-7. Assume that the farmer and the rancher each has 24 labor hours available. If each person divides his time equally between the production of meat and potatoes, then total production is Group of answer choices 6 pounds of meat and 4.5 pounds of potatoes. 5.5 pounds of meat and 8 pounds of potatoes. 12 pounds of meat and 9 pounds of potatoes. 5 pounds of meat and 5.5 pounds of potatoes.
The Boswell Fruit Farm produces only oranges and papaya. Table 1 below shows the maximum possible output combinations of the two fruits using all resources and currently available technology. Answer the questions below and show calculations where appropriate. Table 1 Boswell Fruit Farm Possible Output Combinations Oranges Papayas (thousands of kilos) (thousands of kilos) A 140 0 B 120 20 C 100 38 D 80 52 E 60 64 F 40 74 G 20 80 H 0 82 Which of the possible output combinations represent the lowest opportunity cost for one thousand kilo of papayas? Show your calculation to support your answer.
The Boswell Fruit Farm produces only oranges and papaya. Table 1 below shows the maximum possible output combinations of the two fruits using all resources and currently available technology. Answer the questions below and show calculations where appropriate. Graph the Fruit Farm's production possibilities frontier. Put oranges on the horizontal axis and papayas on the vertical axis. Be sure to identify the output combination points on your diagram. Suppose the Fruit Farm is currently producing at point F. What is the opportunity cost of producing an additional 20,000 kilos of oranges? Suppose the Fruit Farm is plagued by a maggot infestation which destroys orange trees but not papayas. Explain with a graph what happens to the PPF. Which of the possible output combinations represent the lowest opportunity cost for one thousand kilo of papayas? Show your calculation to support your answer.
What is production efficiency and product mix efficiency? What is the main condition for each type of these efficiencies.
Lesson 2 Assignment Product Combo A Combo B Combo C Combo D Combo E Motorcycles 0 2 4 6 8 Surfboards 30 27 21 12 0 Graph the above production data, putting motorcycles on the horizontal axis. What are the opportunity costs of moving from point B to point D and from point D to point A? Point F represents 3 motorcycles and 21 surfboards. Plot this point on your graph and explain what it represents. Point G represents 5 motorcycles and 24 surfboards. Plot this point on your graph and explain what it represents.
The below table shows production points on Sweet-Tooth Land's production possibilities frontier. Which of the following statements is TRUE? B) Producing a combination of 20 chocolate bars and 80 cans of cola is attainable but inefficient. A) Producing a combination of 0 chocolate bars and 100 cans of cola is both attainable and efficient. D) Producing a combination of 40 chocolate bars and 0 cans of cola is unattainable and inefficient. C) Producing a combination of 30 chocolate bars and 38 cans of cola is only attainable with an increase in technology.
Alec and Ellie are the only detectives in the town of Broadchurch. They work together. Assume efficient production. Each has 10 hours in a day to allocate between conducting interviews and completing paperwork. Alec takes 25 hours to complete one interview or 4 hours to complete one file of paperwork. Ellie takes 15 hours to complete one interview or 20 hours to complete one file of paperwork. What is Alec's Opportunity Cost of an interview in terms of files of paperwork? Enter a number only. Note: The question here is asking you for the opp. cost in terms of files so you can just enter a number. On the assessments if the question is phrased as "what is the opportunity cost?", you will have to enter the units as well, without which you will not get full credit.
How prices allocate resources Suppose that there are three beachfront parcels of land available for sale in Astoria and six people who would each like to purchase one parcel. Assume that the parcels are essentially identical and that the minimum selling price of each is $745,000. The following table states each person's willingness and ability to purchase a parcel. Person Willingness and Ability to Purchase (Dollars) Andrew 900,000 Beth 810,000 Darnell 770,000 Eleanor 720,000 Jacques 690,000 Kyoko 680,000 Which of these people will buy one of the three beachfront parcels? Check all that apply. Andrew Beth Darnell Eleanor Jacques Kyoko Assume that the three beachfront parcels are sold to the people that you indicated in the previous section. Suppose that a few days after the last of those beachfront parcels is sold, another essentially identical beachfront parcel becomes available for sale at a minimum…