The data in the table below are for the small country of Xanadu. Assume that the economy is originally producing combination C.       A B C D E F Capital Goods 0 5 7 9 10 11 Capital Goods 2 0 7 9.8 12.6 14 15.4 Consumer Goods 75 60 45 30 15 0   a. A technological change occurs that enables Xanadu to produce 40% more units of capital goods. Complete the row Capital Goods 2, in the table above, given this technological change. Enter your responses, both above and below, rounded to 1 decimal place.   b. Assuming the economy wants to continue with the same quantity of consumer goods, it can have 2.8 more capital goods as a result of the technological improvement.   c. Assuming the economy wants to continue with the same quantity of capital goods, it can have 15 more consumer goods as a result of the technological improvement.   d. Before the technological change, the opportunity cost of the first 60 consumer goods was   capital goods .   e. After the technological change, the opportunity cost of the first 60 consumer goods is

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth
Section: Chapter Questions
Problem 8SQ
Question
The data in the table below are for the small country of Xanadu. Assume that the economy is originally producing combination C.
 
 
 
A B C D E F
Capital Goods 0 5 7 9 10 11
Capital Goods 2
0
7
9.8
12.6
14
15.4
Consumer Goods 75 60 45 30 15 0
 
a. A technological change occurs that enables Xanadu to produce 40% more units of capital goods. Complete the row Capital Goods 2, in the table above, given this technological change. Enter your responses, both above and below, rounded to 1 decimal place.
 
b. Assuming the economy wants to continue with the same quantity of consumer goods, it can have
2.8
more capital goods as a result of the technological improvement.
 
c. Assuming the economy wants to continue with the same quantity of capital goods, it can have
15
more consumer goods as a result of the technological improvement.
 
d. Before the technological change, the opportunity cost of the first 60 consumer goods was
 
capital goods
.
 
e. After the technological change, the opportunity cost of the first 60 consumer goods is
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