Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 2, Problem 11WNG
To determine
Reason for productive efficiency and productive inefficiency of the economy.
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The economy is producing 100X and 200Y, but it could produce 200X and 300Y with the given resources and technology. Does it follow that when the economy is producing 100X and 200Y that it is productive inefficient and that when it is producing 200X and 300 it is productive efficient?
If an unattainable point outside a production possibilities curve can become an attainable and even an efficient point, can an inefficient point become an efficient point in the production possibilities curve model? Explain with a graph.
“As long as all resources are fully employed and every firm in the economy is producing its output using the best available technology, the results will be efficient.” Do you agree or disagree with this statement ? give reason
Chapter 2 Solutions
Microeconomics
Ch. 2.1 - Prob. 1STCh. 2.1 - Prob. 2STCh. 2.1 - Prob. 3STCh. 2.1 - Prob. 4STCh. 2 - Prob. 1QPCh. 2 - Prob. 2QPCh. 2 - Prob. 3QPCh. 2 - Prob. 4QPCh. 2 - Prob. 5QPCh. 2 - Prob. 6QP
Ch. 2 - Prob. 7QPCh. 2 - Prob. 8QPCh. 2 - Prob. 9QPCh. 2 - Prob. 10QPCh. 2 - Prob. 11QPCh. 2 - Prob. 12QPCh. 2 - Prob. 13QPCh. 2 - Prob. 1WNGCh. 2 - Prob. 2WNGCh. 2 - Prob. 3WNGCh. 2 - Prob. 4WNGCh. 2 - Prob. 5WNGCh. 2 - Prob. 6WNGCh. 2 - Prob. 7WNGCh. 2 - Prob. 8WNGCh. 2 - Prob. 9WNGCh. 2 - Prob. 10WNGCh. 2 - Prob. 11WNGCh. 2 - Prob. 12WNG
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- Residents of the town of Smithfield like to consume hams, but each ham requires 10 people to produce it and takes a month. If the town has a total of 100 people, what is the maximum amount of ham the residents can consume in a month?arrow_forwardA firm operates two plants, Plant A and B. Both plants can produce good x and good y. Each plant can produce up to 250 days in a year. For every day plant A can produce either 10 units of good x or 5 units of y. For every day plant B can produce either 5 units of good x or 4 units of y. Case C: How can the firm produce 1250 units of x efficiently? (Or when the firm produces 1250 units of x efficiently, how many units of y does it produce?) Questions Quantity of x produced in Plant B Quantity of y produced in Plant B Quantity of x produced in Plant A Quantity of y produced in Plant A Quantity of y produced by the firm Quantity of y produced by the firmarrow_forwardA fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won't buy it because they dont like the taste. From an economic perspective, the company should keep the hamburger on the menu because they have spent so much money and time developing and promoting the product. spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time. pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost. keep trying to sell the hamburger so that people who developed and promote it have a job with the company.arrow_forward
- The data below shows the various production possibilities for an economy that produces two goods, cars, and television sets. Combination Cars Television A 1000 0 B 800 400 C 600 800 D 400 1200 E 200 1600 F 0 2000 Draw the ppf , put cars on the vertical axis and televisions on the horizontal axis. Use the letters P to label an attainable point. Use the letter T to label an unattainable point. Use the letter S to show an attainable and inefficient point List 3 assumptions on which the PPF is drawn. What is the opportunity cost of television production if we moved from combination E to D? On a new diagram illustrate how a decline in the quality of the labour force would impact the PPFfor car and television production. The output per worker increased resulting in more television sets being produced. Use the diagram in part a to illustrate this. How does your diagram illustrate i) choice ii) scarcity If all…arrow_forwardWhy does a production possibilities frontier have to be downward sloping and have a bowed out shape? The present choice between investing in capital goods and producing consumer goods now affects the ability of an economy to produce in the future. Explain.arrow_forwardResidents of the town of Smithfield like to consume hams, but each ham requires 10 people to produce it and takes a month. If the town has a total of 100 people what is the maximum amount of ham the resident can consume in a month?arrow_forward
- Which of the points are feasible and which are efficient?arrow_forwardSam can brew 5 gallons of root beer in an hour or he can make 4 pizzas in an hour. Ben can brew 7 gallons of root beer in an hour or he can make 5 pizzas in an hour. Sam's opportunity cost of making a pizza is gallons of root beer. Ben's opportunity cost of making a pizza is gallons of root beer.arrow_forwardProduction at a point inside the production possibilities frontier is unattainable and inefficient attainable and efficient attainable and inefficient unattainable and efficientarrow_forward
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