Study Units Debate Units1211101William faces the production possibilities frontier located onyour left. He can only choose between studying for hisclasses or do debate research. If he only concentrates on hisacademics then he will produce 12 "study units" and produceno "debate units". If he only concentrates on debate then hewill produce 12 "debate units" and produce no "study units".Lets assume that William is a one-person economy.38.56.4.3101112Problem 1Graphically show William's production possibilities frontier. Debate should be on the vertical axis.Label four polints on the graph: (A) a point inside the PPF: (B) a point on the PPF where debate ismore valued than studying: (C) a point on the PPF where studying is more valued than debate; (D) apoint outside the PPF. Problem 2Explain the effects of an economy at point AExplain the effects of an economy at point BExplain the effects of an economy at point CExplain the effects of an economy at point at point D (assume that nothing in our economy changes)Problem 3What is the opportunity cost of studying?What is the opportunity cost debating?Why is the PPF slope downward rather than upward?Does our PPF experience the law of increasing opportunity cost? How do we know? Under whatconditions can we have a linear PPF rather than a "bowed-out" PPF? Sketch a PPF that experiencesIncreasing opportunity cost and a PPF that experiences constant opportunity cost.

(Note: Since the question has multiple parts the first three has been solved. Please resubmit the…

Study Units Debate Units 12 11 10 9. 8. 1 William faces the production possibilities frontier located on your left. He can only choose between studying for his classes or do debate research. If he only concentrates on his academics then he will produce 12 "study units" and produce no "debate units". If he only concentrates on debate then he will produce 12 "debate units" and produce no "study units". Lets assume that William is a one-person economy. 3 4. 6. 5. 4. 3 8. 10 11 12 1

Study Units Debate Units 12 11 10 9. 8. 1 William faces the production possibilities frontier located on your left. He can only choose between studying for his classes or do debate research. If he only concentrates on his academics then he will produce 12 "study units" and produce no "debate units". If he only concentrates on debate then he will produce 12 "debate units" and produce no "study units". Lets assume that William is a one-person economy. 3 4. 6. 5. 4. 3 8. 10 11 12 1

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.3P

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