Scarves90Figure 15. Figure I shows the PPF betweenCaps (C) and scarves (S). Assume thatCaps sell for $8 and scarves sell forSS. The maximum revenue thatyou can earn isyou will produceand807060and50scarves40саps.30Show your work on the figure20105 10 15 20 25 30 35 40 45 50 55 60Саps

One of the fundamental economic notions is scarcity. It signifies that demand for a product or…

Scarves 90 Figure 1 5. Figure I shows the PPF between Caps (C) and scarves (S). Assume that Caps sell for $8 and scarves sell for $5. The maximum revenue that you can earn is you will produce and 80 70 60 and 50 scarves 40 30 caps. Show your work on the figure 20 10 5 10 15 20 25 30 35 40 45 50 55 60 Саps

Scarves 90 Figure 1 5. Figure I shows the PPF between Caps (C) and scarves (S). Assume that Caps sell for $8 and scarves sell for $5. The maximum revenue that you can earn is you will produce and 80 70 60 and 50 scarves 40 30 caps. Show your work on the figure 20 10 5 10 15 20 25 30 35 40 45 50 55 60 Саps

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter2: Economic Tools And Economic Systems

Section: Chapter Questions

Problem 18PAE

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Please no written by hand and no image 1. Use the following data to answer the following questions. 3 Table shows the production possibilities for the country XYZ: Table -1 Rice Beef 0 5 5 4.5 9 3.5 12 2 14 0 (a) Draw a Production Possibility Frontier (PPF). (b) How does the PPF illustrate scarcity? (c) How does the PPF illustrate production efficiency? (d) How does the PPF show that every choice involves a tradeoff? (e) How does the PPF illustrate opportunity cost
Elif can produce 6 pies or 30 cakes in 1 hour. Ahmet can produce 10 pies or 20 cakes in 1hour.a) Draw the PPF lines for Elif and Ahmet.b) If each spends 30 minutes of each hour for producing pies and 30 minutes for producing cakes, how many pies and cakes does each produce?c) What is the opportunity cost of producing pies for Elif? What is the opportunity cost of producing pies for Ahmet?d) What is the opportunity cost of producing cakes for Elif? What is the opportunity cost of producing cakes for Ahmet?e) Who has a comparative advantage in producing pies and who has a comparative advantage in producing cakes?f) On the PPF lines, show what Elif produces and what Ahmet produces when they specialize.g) Suppose that they set the exchange price as 1 Pie = 3 Cakes. If they specialize and trade, show an exchange situation that is beneficial for both (compared to the situation you found at part (b))?h) What is the minimum and maximum exchange price they could have determined for an exchange…
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Figure 1 below shows two production possibilies frontiers (PPFs). The solid one isthe original one. The dashed one is the PPF after a technological advance that hasbenefitted only the Y indusry. As an example, think of the invention of fruitpicking robots that benefits only agricultural production and is of no use insoftware production.Figure 2 shows the marginal social benefit (MSB) of X production in terms ofsacrifices of Y. For example, to produce the first unit of X, the society is willing togive up 40 units of Y. For the second unit the socirty is willing to sacrifice only 35units of Y.Before the technological advance:1. What are the marginal social costs (MSCs) of producing the second,third, and the fourth units of X in terms of the sacrifices of Y. Do youremember the reasons for these results?2. What are the allocatively efficient quantities of X and Y?3. Suppose that due to some good news about various health benefits of X,the marginal social benefit of X increases by 10 units…
Drawing a production possibilities frontier (PPF) Instructions: Consider an economy than only produces two goods - Blueberries and Batteries. Step 1: Draw a production possibilities frontier (PPF) for this economy. Label blueberries on the vertical axis and batteries on the horizontal axis. Label one point that is "efficient", one point that is "inefficient", and one point that is "unattainable". Step 2. Draw another PPF of the economy with the axes labeled. Grab another color pen/pencil/highlighter and show how the PPF would change if there was a technological change that increased the production of batteries only. (Hint: The intercept for blueberries will not change.) Clearly label the new PPF. Step 3. Draw another PPF of the economy with the axes labeled. Grab another color pen/pencil/highlighter and show how the PPF would change if there was a drought that destroyed some of the blueberry harvest. (Hint: The intercept for batteries will not change.) Clearly label the new…
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Corn (lb) Scarves(#)U.S. 20 10Mexico 25 5 What is the opportunity cost of one lb of corn in U.S.? a. 1 scarf b. 2 scarves c. 0.5 scarves d. 1/4 scarf