Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText - Access Card Package (12th Edition)
12th Edition
ISBN: 9780134004983
Author: Michael Parkin
Publisher: PEARSON
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Chapter 2, Problem 12APA
To determine
Identify the concept of increasing opportunity in
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Help! The question is to Explain how the following situation would affect a nation's production possibilities curve. A category 5 hurricane destroys over 40% of the nation's productivity. The two questions are What happens to PPF and an explanation. The options for both are in the drop down.
The principle of increasing marginal opportunity cost indicates that as a firm incrementally increases its output of one good, the opportunity cost increases. This results in the PPF being curved and not a straight line.
a. True
b. False
Using your own words, describe the law of increasing opportunity costs. Be sure to explain why this phenomenon occurs and how it helps to contribute to the shape of the production possibilities frontier.
Chapter 2 Solutions
Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText - Access Card Package (12th Edition)
Ch. 2.1 - Prob. 1RQCh. 2.1 - Prob. 2RQCh. 2.1 - Prob. 3RQCh. 2.1 - Prob. 4RQCh. 2.1 - Prob. 5RQCh. 2.1 - Prob. 6RQCh. 2.2 - Prob. 1RQCh. 2.2 - Prob. 2RQCh. 2.2 - Prob. 3RQCh. 2.2 - Prob. 4RQ
Ch. 2.2 - Prob. 5RQCh. 2.3 - Prob. 1RQCh. 2.3 - Prob. 2RQCh. 2.3 - Prob. 3RQCh. 2.3 - Prob. 4RQCh. 2.3 - Prob. 5RQCh. 2.4 - Prob. 1RQCh. 2.4 - Prob. 2RQCh. 2.4 - Prob. 3RQCh. 2.4 - Prob. 4RQCh. 2.4 - Prob. 5RQCh. 2.5 - Prob. 1RQCh. 2.5 - Prob. 2RQCh. 2.5 - Prob. 3RQCh. 2 - Prob. 1SPACh. 2 - Prob. 2SPACh. 2 - Prob. 3SPACh. 2 - Prob. 4SPACh. 2 - Prob. 5SPACh. 2 - Prob. 6SPACh. 2 - Prob. 8SPACh. 2 - Prob. 9SPACh. 2 - Prob. 7SPACh. 2 - Prob. 10SPACh. 2 - Prob. 11APACh. 2 - Prob. 12APACh. 2 - Prob. 13APACh. 2 - Prob. 14APACh. 2 - Prob. 15APACh. 2 - Prob. 16APACh. 2 - Prob. 17APACh. 2 - Prob. 20APACh. 2 - Prob. 21APACh. 2 - Prob. 22APACh. 2 - Prob. 18APACh. 2 - Prob. 19APACh. 2 - Prob. 23APACh. 2 - Prob. 24APACh. 2 - Prob. 25APA
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- a. What is the opportunity cost of producing the first smartphone (point a to b) in terms of the number of hotdogs sacrificed? The cost of the second smartphone (point b to c)? The cost of the third smartphone (point c to d)? b. Explain why PPF is a straight line and why sometimes it is bow-shaped? c. In what ways is your standard of living different from that of your parents or grandparents when they were your age? Why have these changes occurred?arrow_forwardPlease answer the followingarrow_forwardI don't understand how to draw a production possibilities frontier.arrow_forward
- In Kessy’s old kitchen, he could bake 10 cookies or mix 15 glasses of lemonade in a day. Now he has a bigger oven and kitchen. Draw Kessy’s initial PPF assuming constant opportunity cost between cookies and lemonade. Label it PPF1. [For this question, let cookies be illustrated on the horizontal axis.] Given PPF1, what is the opportunity cost of producing more cookies? In other words, how much lemonade must Kessy sacrifice to produce, say, one more cookie? Draw Kessy’s new PPF (label it PPF2) after he receives the new appliances.arrow_forwardWhen technology of production improves what happens to the production possibilities frontier? does not affect the PPF. shifts the PPF inward, toward the origin. shifts the PPF outward, away from the origin. rotates the PPF outward, making it less steep.arrow_forwardQ.20 What will be the shape of PPC when marginal opportunity cost is increasing? (a) Concave to the origin (c) Upward sloping (b) Convex to the origin (d) both (a) and (c) (b)arrow_forward
- Draw a PPF for butter and guns production.a. Explain verbally and graphically the concept of “free lunch.” b. Explain verbally and graphically what movement between two production points on the PPF represents.Does this qualify as “a free lunch?” Why or why not?arrow_forwardThe table shows Yucatan's production possibities, Food (pounds per month) Food (pounds per month) 200 Sunscreen (gallons per month) and 200 100 and 400 50 and 600 and 800 150- Draw the four points defined in the table. Use the four-point line tool to draw the PPF. Label it. 100 100 IH Yucatan produces 100 pounds of food per month, it must produce 400 galions of sunscreen to achieve production efficiency 50 The opportunity cost of 1 pound of food isegallons of le00 400 Sunscreen (galons per month) le00 sunscreen 200 1000 The opportunity cost of 1 gallon of sunscroen isO pounds of food. > Answer to 2 decmal places. » Draw only the objects specified in the questionarrow_forwardPlease help me explain how the economic concept of scarcity links production possibilities curves and comparative advantage. Explain how scarcity is the common foundation for PPCs and comparative advarrow_forward
- EBP Construction is producing cements and plywood. The production function of the economic goods are presented in the table below. Graph the PPF. DESCRIBE THE NATURE OF A-F. Describe the nature of point G which is inside the PPF. Describe the nature of point H which is outside the PPF.arrow_forwardExplain how each of the following situations would affect a nation's production possibilities curve. COVID 19 increases the number of unemployed workers in the nation A global pandemic results in 6 million confirmed cases and the death of over 400,000 individuals A switch to online delivery increases access to education in the nation colleges and universities but might have a detrimental impact on the quality of education What happen to the PPF in each scenarios and give a brief explanation.arrow_forwardmicroeconomics help.arrow_forward
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