Q6 The production possibilities curve below applies to an economy, Prospera that produces only ice-cream sodas and industrial robots. What is the opportunity cost of industrial robots in terms of ice cream sodas when Prospera moves from point a to b and b to c? What is the opportunity cost of ice cream sodas in terms of industrial robots when Prospera moves from point e to d and d to c?How a technological improvement in the assembly of industrial robots would affect the production possibilities curve?If industrial robots can be viewed as a capital good, then describe how this economy’s decision to produce more industrial robots will affect its future production possibilities curve?Can Prospera produce 6 industrial robots and 40 ice-cream sodas Why?How would you describe production in Prospera, If 4 industrial robots and 20 ice-cream sodas are produced? Ice-Cream Sodas (thousands)50403020100+Production Possibilities Curve for Prosperaa (0, 50)2b (2,45)c (4, 35)4Industrial Robots6d (6, 20)e (8,0)8

Opportunity Cost refers to the cost which is foregone to get the next best alternative. It refers to…

Answered: Q6 The production possibilities curve…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Q6 The production possibilities curve below applies to an economy, Prospera that produces only ice-cream sodas and industrial robots.

What is the opportunity cost of industrial robots in terms of ice cream sodas when Prospera moves from point a to b and b to c?
What is the opportunity cost of ice cream sodas in terms of industrial robots when Prospera moves from point e to d and d to c?
How a technological improvement in the assembly of industrial robots would affect the production possibilities curve?
If industrial robots can be viewed as a capital good, then describe how this economy’s decision to produce more industrial robots will affect its future production possibilities curve?
Can Prospera produce 6 industrial robots and 40 ice-cream sodas Why?
How would you describe production in Prospera, If 4 industrial robots and 20 ice-cream sodas are produced?

Ice-Cream Sodas (thousands)
50
40
30
20
10
0+
Production Possibilities Curve for Prospera
a (0, 50)
2
b (2,45)
c (4, 35)
4
Industrial Robots
6
d (6, 20)
e (8,0)
8

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