C 04:507:01 PM23.7KB/s O L A 9ll (51)Chegg= CheggEconon Time remaining: 00:09:54The opportunity cost of production is zeroO outside (to the right of) the production possibilities frontier.O inside the production possibilities frontier.O when all resources are used to produce only one of the two goods.O on the production possibilities frontier.fiproduction possibilities frontier has a 'bowed outward' shape only when:O As the quantity of one good produced increases, the opportunity cost ofproducing that good also increases.O an economy is self-sufficient instead of interdependent and engaged in trade.the more resources the economy uses to produce one good, the fewer resourcesit has available to produce the other good.O the rate of tradeoff between the two goods being produced is constant.2

The opportunity cost of production is zero outside (to the right of) the production possibilities frontier. O inside the production possibilities frontier. O when all resources are used to produce only one of the two goods. O on the production possibilities frontier.

The opportunity cost of production is zero outside (to the right of) the production possibilities frontier. O inside the production possibilities frontier. O when all resources are used to produce only one of the two goods. O on the production possibilities frontier.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.12P

See similar textbooks

Similar questions

Assume an economy producing only two goods (shoes and computers) with a fixed amount ofproductive resources and technology and employing all its productive resources to the maximum.Production in this economy is subjected to the law of diminishing marginal returns and resourcesare assumed to be fully optimized. In addition, the cost of sacrificing shoes for computers andvice versa is 1. On the basis of the foregoing assumptions, answer the following questions:i. Draw the economy’s production possibility frontier on hindsight of the relevantassumption.ii. Why are points outside the frontier unattainable? iii. Identify three ways by which the economy can attain the level of production outside thePPF. iv. What happens to the PPF when technological change overwhelmingly favours theproduction of computers? v. What happens to the PPF when the economy discovers an improved technology forproducing shoes? vi. Assume now that the sacrifice ratio is greater than 1, show what will happen to the…
France and Poland each have one worker whosemonthly linear Production PossibilityFrontier indicatesthe following production possibilities: PolandFranceComputers (C) 246Grain (G) 43 a)Franceâ€™sopportunity cost of G in terms of units of C equals ______ ? b) Polandâ€™sopportunity cost of G in terms of units of C equals ______ ?For the followingparts, please complete the questions by filling in the blank, and responding toremainderof the question: c) Polandâ€™scomparative advantage is in ______ because: d) If France and Poland decide to trade, _________ will be theexporter of G while ______ will bethe importer because: e) If the economies choose to trade, the world relative priceof goods must be ________ in orderfor trade to be mutually beneficial, because:
France and Poland each have one worker whosemonthly linear Production PossibilityFrontier indicatesthe following production possibilities: PolandFranceComputers (C) 246Grain (G) 43 a) Franceâ€™sopportunity cost of G in terms of units of C equals ______ ? b) Polandâ€™sopportunity cost of G in terms of units of C equals ______ ?For the followingparts, please complete the questions by filling in the blank, and responding toremainderof the question: c) Polandâ€™scomparative advantage is in ______ because: d) If France and Poland decide to trade, _________ will be theexporter of G while ______ will bethe importer because: e) If the economies choose to trade, the world relative priceof goods must be ________ in orderfor trade to be mutually beneficial, because: 4.In the following problem, assume that the UK currency is the pound sterling (PST)and thecurrency in the restof the Europe is the euro (EUR). Suppose that thePST appreciates relative to the EUR. For the following parts, you will…
Robinson is trapped on an island and can produce Fish (F) or Coconuts (C) with his time. Let LF and LC denote labor hours dedicated to fishing or gathering coconuts, respectively. Robinson's technological relationships for producing fish is given by: F=12LF Robinson's technological relationships for producing coconuts is given by: C=14LC Which of the following is/are correct? check all that apply - Robinson becomes less productive at the margin for each additional hour spent fishing - every hour spent harvesting coconuts is equally productive at the margin in terms of labor usage - Robinson becomes less productive at the margin for each additional hour spent harvesting coconuts - every hour of labor spent fishing is equally productive at the margin in terms of labor usage
Assume an economy produces only two goods ( shoes and computers ) with a fixed amount of productive resources and technology and employing all its productive resources to the maximum. Production in this economy is subjected to the laws of diminishing marginal returns and resources are assumed to be fully optimized. In addition, the cost of sacrificing shoes for computers and vice versa is 1. On the basis of the forgoing assumptions , drawthe economy's production possibility frontier on hindsight of the relevant assumption and why the points outside the frontier unattainable?.
It takes Andy 45 minutes to complete a load of laundry and 15 minutes to wrap a present. It takes Bob 60 minutes to complete a load of laundry and 30 minutes to wrap a present. Which of the following statements is true? Select one : O A. Bob's opportunity cost of doing a load of laundry is wrapping 3 presents. O B. Bob has a comparative advantage in doing laundry. O C. Bob has a comparative advantage in wrapping a present. O D. Andy's opportunity cost of wrapping a present is doing 3 loads of laundry. O E. Bob has an absolute advantage in doing laundry.
Assume an economy producing only two goods (shoes and computers) with a fixed amount of productive resources and technology and employing all its productive resources to the maximum.Production in this economy is subjected to the law of diminishing marginal returns and resourcesare assumed to be fully optimized. In addition, the cost of sacrificing shoes for computers andvice versa is 1. On the basis of the foregoing assumptions, answer the following questions: i. Draw the economy’s production possibility frontier on hindsight of the relevantassumption.
Assume China has 10,000 workers. Suppose that each Chinese worker produces either 30 pairs of boots or 10 software per month. Suppose that half of Chinese workers produce boots and half produce programs. What quantities of boots and software does China produce? Are these production combinations efficient? Select one: O a. China produces 50,000 pairs of boots and 150,000 software per month. These production combinations are efficient O b. China produces 150,000 pairs of boots and 50,000 software per month. These production combinations are efficient. O c. China produces 50,000 pairs of boots and 150,000 software per month. These production combinations are not efficient. O d. China produces 150,000 pairs of boots and 50,000 software per month. These production combinations are not efficient.
Robinson and Friday are trapped on an island together and can produce Fish (F) or Coconuts (C) with the time they have on any given day. Let LF and LC denote labor hours dedicated to fishing or gathering coconuts, respectively. Robinson's technological relationships for producing coconuts is given by: CRobinson=14LC Friday's technological relationship for producing coconuts is given by: CFriday=12LC Which of the following is true? (check all that apply) If Robinson and Friday both use the same (positive) number of hours of labor to harvest coconuts, Robinson will always be able to harvest more. Robinson has the comparative advantage in coconut production Friday has the absolute advantage in coconut production Both Robinson's and Friday's marginal productivity of labor decreases as they spend more time harvesting coconuts
John is thinking about going to the movies tonight . A ticket costs $ 9 and he will have to cancel his baby - sitting job that pays $ 20 . The total opportunity cost of seeing the movie is O A ) $9 O B ) $29 O C ) Indeterminate O D ) $ 29 minus the benefit of seeing the movie
Assume that your company produces two goods: laptops and tablets. Assume aslo that your company has limited resources( including time) to devote to producing these items. Now assume that the laptop team does something to improve the efficiency of making laptops, while the tabley holds to old methods. Given the change you can a) only increase your production of laptops b) only increase your production of tablets c) increase production of both items d) not increase your production in either tablets or laptops.
Frances is a skilled toy maker who is able to produce both trucks and drums. She has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of her time. Choice Hours Producing Produced (Trucks) (Drums) (Trucks) (Drums) A 8 0 4 0 B 6 2 3 10 C 4 4 2 16 D 2 6 1 18 E 0 8 0 19 Suppose Frances is currently using combination D, producing one truck per day. Her opportunity cost of producing a second truck per day is _______. Now, suppose Frances is currently using combination C, producing two trucks per day. Her opportunity cost of producing a third truck per day is ________ per day. From the previous analysis, you can determine that as Frances increases her production of trucks, her opportunity cost of producing one more truck _______. Because she can now make more trucks per hour, Frances's opportunity cost of producing drums is…