4. A zoo cannot have everything it wants. It has to make choices. The zoo committeehas decideathat it can have several concession stands. It has to decide how many popcorn stands and howmany cotton candy stands to have scattered around the zoo, The committee made up a table of thedifferent combinations depending upon what the committee has determined to be the cost of eachstand. Now the committee has to decide what combination is right.a. Use the table below to graph & label a Production Possibilities curve on the grid belowPopcorn or Cotton CandyPopcorn,Cotton CandyPopcorn10192.44Cotton Candyb. Next, label a point of underutilization (inefficiency). Call it Point A, Next, label apoint ofefficiency. Call it Point B. Last, label a point that is now unattainable. Call it Point C.c. Look at the table: To get one popcorn stand, how many cotton candy stands have to begiven up (marginal/opportunity cost)? 10 -9 = ?d. What is the marginal/opportunity cost of 3 popcorn stands?e. What is the marginal/opportunity cost of 4 popcorn stands?Page 4 of 2 Date:Good XGood Y5. Plot the following combinations of good X and good Y on thegraph below.Plot all points and connect them with a smooth37343028201010172029curve.Good Y3640oducto ceGood XAnswer the following questions:a. Calculate the cost of increasing production of good X from 0 to 10 units, asmeasuredin the amount of good Y that would need to be sacrificed.b. Calculate the cost of increasing production of good X from 10 to 20 units, asmeasuredin the amount of good Y that would need to be sacrificed.c. Calculate the cost of increasing production of good X from 20 to 30 units, asmeasuredin the amount of good Y that would need to be sacrificed.d. What happens to the opportunity cost as the production of good X increases?Page 5 of 2

Answered: Image /qna-images/answer/3c500e92-6043-4841-95ee-f1f181afa82e.jpg

a. Use the table below to graph & label a Production Possibilities curve on the grid below Popcorn or Cotton Candy Popcorn Cotton Candy Popcorn 10 1 9. 7 3 4 4 Cotton Cand b. Next, label a point of underutilization (inefficiency). Call it Point A, Next, label apoint of efficiency. Call it Point B. Last, label a point that is now unattainable. Call it Point C. C. Look at the table: To get one popcorn stand, how many cotton candy stands have to be given up (marginal/opportunity cost)? 10-9 = ?

a. Use the table below to graph & label a Production Possibilities curve on the grid below Popcorn or Cotton Candy Popcorn Cotton Candy Popcorn 10 1 9. 7 3 4 4 Cotton Cand b. Next, label a point of underutilization (inefficiency). Call it Point A, Next, label apoint of efficiency. Call it Point B. Last, label a point that is now unattainable. Call it Point C. C. Look at the table: To get one popcorn stand, how many cotton candy stands have to be given up (marginal/opportunity cost)? 10-9 = ?

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 6PA

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