Microeconomics, Student Value Edition (6th Edition)
6th Edition
ISBN: 9780134125756
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 2.2.8PA
To determine
Individual and neighbor’s production possibilities frontier
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
According to the article of Jan 18, 2016 "several Canadians are nominated for Oscars" answer the question that if we consider a production possibilities frontier that measures movies and other goods and services. How does the Production possibility frontier illustrate production efficiency? Use the economic concept.
Nick and Rosa are farmers. Each one owns a 20-acre plot of land. The following table shows the
amount of barley and alfalfa each farmer can produce per year on a given acre. Each farmer
chooses whether to devote all acres to producing barley or alfalfa or to produce barley on some of
the land and alfalfa on the rest.
Barley
(Bushels per acre) (Bushels per acre)
Alfalfa
Nick
10
5
Rosa
40
8
On the following graph, use the blue line (circle symbol) to plot Nick's production possibilities
frontier (PPF), and use the purple line (diamond symbol) to plot Rosa's PPF.
(?)
Nick's PPF
10
140
120
Rosa's PPF
180
40
20
180 200 300 40 sa0 a0 700 0 s00 1000
BARLEY (Bushela
* has an absolute advantage in the production of barley, and
has an absolute
advantage in the production of alfalfa.
Nick's opportunity cost of producing 1 bushel of alfalfa is
bushels of barley, whereas
bushels of barley. Because
* has a comparative
Rosa's opportunity cost of producing 1 bushel of alfalfa is
Nick has a
opportunity…
Bob and Cho are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per
year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye on the
rest.
Corn
Rye
(Bushels per acre)
(Bushels per acre)
Bob
10
5
Cho
40
8
On the following graph, use the blue line (circle symbol) to plot Bob's production possibilities frontier (PPF), and use the purple line (diamond symbol)
to plot Cho's PPF.
200
Bob's PPF
180
160
F3
0+
F4
H
r
F5
M
F7
1
F8
#
F9
CI
F10
Chapter 2 Solutions
Microeconomics, Student Value Edition (6th Edition)
Ch. 2 - Prob. 1TCCh. 2 - Prob. 2TCCh. 2 - Prob. 2.1.1RQCh. 2 - Prob. 2.1.2RQCh. 2 - Prob. 2.1.3RQCh. 2 - Prob. 2.1.4PACh. 2 - Prob. 2.1.5PACh. 2 - Prob. 2.1.6PACh. 2 - Prob. 2.1.7PACh. 2 - Prob. 2.1.8PA
Ch. 2 - Prob. 2.1.9PACh. 2 - Prob. 2.1.10PACh. 2 - Prob. 2.1.11PACh. 2 - Prob. 2.1.12PACh. 2 - Prob. 2.1.13PACh. 2 - Prob. 2.1.14PACh. 2 - Prob. 2.2.1RQCh. 2 - Prob. 2.2.2RQCh. 2 - Prob. 2.2.3PACh. 2 - Prob. 2.2.4PACh. 2 - Prob. 2.2.5PACh. 2 - Prob. 2.2.6PACh. 2 - Prob. 2.2.7PACh. 2 - Prob. 2.2.8PACh. 2 - Prob. 2.2.9PACh. 2 - Prob. 2.2.10PACh. 2 - Prob. 2.2.11PACh. 2 - Prob. 2.2.12PACh. 2 - Prob. 2.2.13PACh. 2 - Prob. 2.2.14PACh. 2 - Prob. 2.2.15PACh. 2 - Prob. 2.3.1RQCh. 2 - Prob. 2.3.2RQCh. 2 - Prob. 2.3.3RQCh. 2 - Prob. 2.3.4RQCh. 2 - Prob. 2.3.5RQCh. 2 - Prob. 2.3.6RQCh. 2 - Prob. 2.3.7PACh. 2 - Prob. 2.3.8PACh. 2 - Prob. 2.3.9PACh. 2 - Prob. 2.3.10PACh. 2 - Prob. 2.3.11PACh. 2 - Prob. 2.3.12PACh. 2 - Prob. 2.3.13PACh. 2 - Prob. 2.3.14PACh. 2 - Prob. 2.3.15PACh. 2 - Prob. 2.3.16PA
Knowledge Booster
Similar questions
- Briefly describe efficiency in production?arrow_forwardWhy is a production possibilities frontier typically drawn as a curve, rather than a straight line?arrow_forwardWhich point(s) are efficient? Briefly explain why. B Points A, B, C, and D because they are attainable. Points B, C, and D because this is where maximum output is produced with available resources. Point A because it is inside the production possibilities frontier. Point E because it is where the most capital and consumption goods combined are produced. A D Point B because it is where the most resources are used to produce capital goods. Which point(s) are inefficient? Briefly explain why. PPF O A. Points B, C, and D because they are on the production possibilities frontier. O B. Points B, C, D, and E because they are unattainable. Consumption goods O C. Points A, B, C, and D because they are attainable. O D. Point E because it is unattainable. OE. Point A because production there is not using all available resources. At which point is the country's future growth rate likely to be the highest? Briefly explain why. O A. Point E because it is where the production possibilities frontier…arrow_forward
- 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 resident can consume in a month?arrow_forwardWhat is a production possibilities frontier? How can we show efficiency on a productions possibilities frontier? How can we show inefficiency? What causes a production possibilities frontier to shift outward?arrow_forwardBriefly explain how an economy could shift production from an inefficient point of production (such as point E in the picture above) to an efficient point of production (such as point C).arrow_forward
- What is comparative advantage?arrow_forwardAccording to the article of Jan 18, 2016 "several Canadians are nominated for Oscars" answer the question that What is the trade off between movies and other goods and services? How is this trade off illustrated by the production possibilities frontier? Use economic concepts to answer this question.arrow_forwardHomework (Ch 03) Attempts: Keep the Highest: 3/4 2. Gains from trade Consider two neighboring island countries called Contente and Felicidad. They each have 4 million labor hours available per week that they can use to produce rye, jeans, or a combination of both. The following table shows the amount of rye or jeans that can be produced using 1 hour of labor. Rye Jeans Country (Bushels per hour of labor) (Pairs per hour of labor) Contente 6. 12 Felicidad 16 Initially, suppose Contente uses 1 million hours of labor per week to produce rye and 3 million hours per week to produce jeans, while Felicidad uses 3 million hours of labor per week to produce rye and 1 million hours per week to produce jeans. Consequently, Contente produces 6 million bushels of Is rye and 36 million pairs of jeans, and Felicidad produces 12 million bushels of rye and 16 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each…arrow_forward
- Suppose the fictional country of Shenandoah produces only two goods: millet and telephoto lenses. The following graph plots Shenandoah's current production possibilities frontier, and includes six different output combinations given by black points (plus symbols) labeled A to F. A B с D TELEPHOTO LENSES (Millions) E 100 F 80 40 20 0 PPF U 0+ Point Inefficient Efficient Unattainable 0 0 20 Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply. U +0 E 40 60 MILLET (Millions of bushels) 00 'x 00 0 80 100arrow_forwardExplain why a movement from a point inside a production possibilities frontier to the production possibilities frontier can be described as a free lunch and a movement along a production possibilities frontier is described as a tradeoff.arrow_forwardDraw a production possibilities frontier diagram for a farm able to produce corn or soybeans. What does a production possibilities frontier illustrate?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning