A production possibilities table for DVDS and computers is shown below.Production AlternativesType of ProductionABDEComputers20406080DVDS80705535a. Show these data graphically, and then identify a point that indicates an inefficient use of resources and a point that indicates anunattainable combination of goods.Instructions: Use the tool provided 'PPC' to draw a PPC curve (plot 5 points total).100Tools80PPC60402020406080100ComputersPoint(Click to select) ♥ is an example of an inefficient point, while point (Click to select) ▼is an example of an unattainable point.b. Does the economy above demonstrate the law of increasing opportunity cost?|(Click to select) ♥DVDS

a. The PPC(‘production possibilities curve’) is referred to a graphical model which represents…

Answered: Product Production A 20 80 70

Business

Economics

Product Production A 20 80 70

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter2: Economic Tools And Economic Systems

Section: Chapter Questions

Problem 3.5P

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The data below describe the current production possibilities for an economy that produces two goods: Livestock Products and Aquaculture products Quantities that can be produced per month with the currently available resources Aquaculture products 6000 5900 5700 5400 5200 4100 Livestock products 0 100 200 300 350 500 Label point A B C D E F Required: (a) Explain the existence of opportunity costs in this situation. (b) Plot the PPF. Put Livestock goods on the vertical axis; Aquaculture on the horizontal axis. Label the points. Be sure each axis is to scale. Scales can differ between axes. (c) “Your PPF slopes down because of tradeoffs.” Explain that sentence in words that make sense to someone not taking economics.
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Table 1: Production Capacity of COVID-FREE LAND.Toilet Rolls Sanitizers30,000 028,000 1,00024,000 2,00018,000 3,00010,000 4,0000 5,000Use information in Table 1 above to answer the following questions: In your own words, while making use of the graph that you have created in part a, explain what the PPF is. Cleary state all assumptionsand properties of the PPF.
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What is Production Possibility Frontier? Draw and explain a production possibilities frontier for an economy that produces milk and cookies. What happens to this frontier if disease kills half of the economy’s cow population?
2. What is a production possibilities frontier (ppf) for an economy? explain your answers with an appropriate diagram.
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The first principle of economics in Chapter 1 is thatpeople face trade-offs. Use a production possibilitiesfrontier to illustrate society’s trade-off between two“goods”—a clean environment and the quantity ofindustrial output. What do you suppose determinesthe shape and position of the frontier? Show whathappens to the frontier if engineers develop anew way of producing electricity that emits fewerpollutants
Suppose a nation has a total of 12 units of labor, which can be used to produce either guns orbutter. One gun takes 6 units of labor to produce and 1 butter takes 2 units of labor toproduce.Evaluate the allocation of resources of this country based on the following points.• Reason for the scarcity that exists in this economy. Use the data as evidence of yourreasoning.• Maximum quantity of guns that can be produced.• Maximum quantity of butter than can be produced.• Diagram which represents the nation’s production possibility curve.• Opportunity cost of guns in this nation• Reason why the nation can’t produce both 3 guns and 4 butters.• Reason why the nation shouldn’t produce both 1 gun and 2 butters.
(Shape of the PPF) Suppose a production possibilitiesfrontier includes the following combinations:Cars Washing Machines0 1,000100 600200 0a. Graph the PPF, assuming that it has no curvedsegments.b. What is the cost of producing an additional car when50 cars are being produced?