Question-1 Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His production possibilities are given in the table below: Tables Chairs 200 50 180 60 160 70 140 80 120 90 1. Explain production possibilities frontier (PPF) by putting tables on the Horizontal axis and chairs on the vertical axis. What is Bill's opportunity cost of producing one additional table? 2. Currently Bill is producing 70 tables and 140 chairs. Is this allocation of resources efficient? Why? 3. Show this allocation on the graph and advise Bill how he can be more efficient.
Question-1 Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His production possibilities are given in the table below: Tables Chairs 200 50 180 60 160 70 140 80 120 90 1. Explain production possibilities frontier (PPF) by putting tables on the Horizontal axis and chairs on the vertical axis. What is Bill's opportunity cost of producing one additional table? 2. Currently Bill is producing 70 tables and 140 chairs. Is this allocation of resources efficient? Why? 3. Show this allocation on the graph and advise Bill how he can be more efficient.
Chapter3: Scarcity, Trade-offs, And Production Possibilities
Section: Chapter Questions
Problem 6P
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Transcribed Image Text:Question-1
Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His production possibilities
are given in the table below:
Tables
Chairs
200
50
180
60
160
70
140
80
120
90
1. Explain production possibilities frontier (PPF) by putting tables on the Horizontal axis and chairs
on the vertical axis. What is Bill's opportunity cost of producing one additional table?
2. Currently Bill is producing 70 tables and 140 chairs. Is this allocation of resources efficient?
Why?
3. Show this allocation on the graph and advise Bill how he can be more efficient.
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