The prairie dog has always been considered a problem for American cattle ranchers. They dig holes that cattle and horses can step in, and they eat grass necessary for cattle. Recently, ranchers have discovered that there is a demand for prairie dogs as pets. In some areas, prairie dogs can sell for as high as $150 each. Cattlemen are now fencing off prairie dog towns on their land so these towns will not be disturbed by their cattle.Draw a rancher’s production possibilities frontier showing increasing opportunity cost of cattle production in terms of prairie dog production. Using a separate graph for each situation, show what would happen to the initial production possibilities frontier in each of the following situations: 1. The prairie dog has always been considered a problem for American cattle ranchers. They dig holesthat cattle and horses can step in, and they eat grass necessary for cattle. Recently, ranchers havediscovered that there is a demand for prairie dogs as pets. In some areas, prairie dogs can sell for ashigh as $150 each. Cattlemen are now fencing off prairie dog towns on their land so these townswill not be disturbed by their cattle.Draw a rancher's production possibilities frontier showing increasing opportunity cost of cattleproduction in terms of prairie dog production. Using a separate graph for each situation, show whatwould happen to the initial production possibilities frontier in each of the following situations:a. The outcome is efficient, with ranchers choosing to produce equal numbers ofcattle and prairie dogs.b. As a protest against the government introducing the gray wolf back into thewild in their state, ranchers decide to withhold 25 percent of the availablegrassland for grazing.The price of prairie dogs increases to $200 each, so ranchers decide to allotс.additional land for prairie dogs.

Cattlemen use portion of the ground adjacent to the fence for dog breeding. This property could have…

Answered: The prairie dog has always been…

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 6PA

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The prairie dog has always been considered a problem for American cattle ranchers. They dig holes that cattle and horses can step in, and they eat grass necessary for cattle. Recently, ranchers have discovered that there is a demand for prairie dogs as pets. In some areas, prairie dogs can sell for as high as $150 each. Cattlemen are now fencing off prairie dog towns on their land so these towns will not be disturbed by their cattle.

Draw a rancher’s production possibilities frontier showing increasing opportunity cost of cattle production in terms of prairie dog production. Using a separate graph for each situation, show what would happen to the initial production possibilities frontier in each of the following situations:

1. The prairie dog has always been considered a problem for American cattle ranchers. They dig holes
that cattle and horses can step in, and they eat grass necessary for cattle. Recently, ranchers have
discovered that there is a demand for prairie dogs as pets. In some areas, prairie dogs can sell for as
high as $150 each. Cattlemen are now fencing off prairie dog towns on their land so these towns
will not be disturbed by their cattle.
Draw a rancher's production possibilities frontier showing increasing opportunity cost of cattle
production in terms of prairie dog production. Using a separate graph for each situation, show what
would happen to the initial production possibilities frontier in each of the following situations:
a. The outcome is efficient, with ranchers choosing to produce equal numbers of
cattle and prairie dogs.
b. As a protest against the government introducing the gray wolf back into the
wild in their state, ranchers decide to withhold 25 percent of the available
grassland for grazing.
The price of prairie dogs increases to $200 each, so ranchers decide to allot
с.
additional land for prairie dogs.

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