Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 2, Problem 6SQP
(a)
To determine
The
(b)
To determine
The inefficiency point.
(c)
To determine
The law of increasing
(d)
To determine
Shift in the production possibility curve.
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The following is a set of hypothetical production possibilities for a nation.
Combination
Automobiles (thousands)
Beef (thousands of tons)
A
0
10
B
2
9
C
4
7
D
6
4
E
8
0
Plot these production possibilities data. What is the opportunity cost of the first 2,000 automobiles produced? Between which points is the opportunity cost per thousand automobiles highest? Between which points is the opportunity cost per thousand tons of beef highest?
Label a point F inside the curve. Why is this an inefficient point? Label a point G outside the curve. Why is this point unattainable? Why are points A through E all efficient points?
Does this production possibilities curve reflect the law of increasing opportunity costs? Explain.
What assumptions could be changed to shift the production possibilities curve?
explain a production possibilities frontier for an economy that produces cheese and milk. What happens to this frontier if a disease kills half of the economy’s cows?
Suppose a production possibilities frontier includes the following combinations:
Cars
Washing Machines
0
1,000
100
600
200
0
What is the cost of producing an additional washing machine when 50 cars are being produced? When 150 cars are being produced? What do your answers tell you about opportunity costs?
Chapter 2 Solutions
Micro Economics For Today
Ch. 2.6 - Prob. 1YTECh. 2.7 - Prob. 1GECh. 2 - Prob. 1SQPCh. 2 - Prob. 2SQPCh. 2 - Prob. 3SQPCh. 2 - Prob. 4SQPCh. 2 - Prob. 5SQPCh. 2 - Prob. 6SQPCh. 2 - Prob. 7SQPCh. 2 - Prob. 8SQP
Ch. 2 - Prob. 9SQPCh. 2 - Prob. 10SQPCh. 2 - Prob. 11SQPCh. 2 - Prob. 12SQPCh. 2 - Prob. 1SQCh. 2 - Prob. 2SQCh. 2 - Prob. 3SQCh. 2 - Prob. 4SQCh. 2 - Prob. 5SQCh. 2 - Prob. 6SQCh. 2 - Prob. 7SQCh. 2 - Prob. 8SQCh. 2 - Prob. 9SQCh. 2 - Prob. 10SQCh. 2 - Prob. 11SQCh. 2 - Prob. 12SQCh. 2 - Prob. 13SQCh. 2 - Prob. 14SQCh. 2 - Prob. 15SQCh. 2 - Prob. 16SQCh. 2 - Prob. 17SQCh. 2 - Prob. 18SQCh. 2 - Prob. 19SQCh. 2 - Prob. 20SQ
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Use the data below to answer the following questions. Combination Tomatoes (kg) Chilies (kg) A 70 0 B 66 2 C 60 4 D 52 6 E 42 8 F 30 10 G 16 12 H 0 14 Draw a production possibilities curve by putting tomatoes on the vertical axis and chilies on the horizontal axis. Calculate opportunity cost if we move from: A to B = _________________ C to E = _________________ E to D = _________________ H to G = _________________arrow_forwardSuppose two nations, Beta and Gamma, each make aircraft and corn. The main resource in each nation is hours of "labor". Production occurs in each nation according to the following table. With one hour, a worker in each nation can produce the following: Table showing Aircraft and Corn produced per hour Aircraft Corn Beta 1 per hour 500 per hour Gamma 2 per hour 300 per hour What is the opportunity cost of each good (in terms of the other good) for each nation? Try creating a small table of the opportunity costs such as this: Beta: 1 aircraft = _______ corn 1 corn = _______ aircraft Gamma: 1 aircraft = _______ corn 1 corn = _______ aircraft Which nation has the Absolute Advantage in aircraft? Which nation has the Absolute Advantage in corn? Which nation has the Comparative Advantage in aircraft? Which nation has the Comparative Advantage in corn? If these two nations trade, what good should each specialize in and export to the other? What…arrow_forwardA country, Frankland, produces only two products, cars and trucks. Currently, Frankland is producing on the curve, producing an even amount of cars and trucks. Define what a production possibilities curve is and is used for, and explain what happens when a new technology is adopted by the country of Frankland and the nation is able to increase production because of the increased productivity. You must use complete sentence to answer this question.arrow_forward
- Suppose that a nation currently is producing combination F in the table below and on the graph of the production possibilities curve to the right. What is the opportunity cost of producing 10.5 million more smartphones and moving to production combination E? Combination A B с D E F G Smartphones (millions per year) 50.0 48.0 45.0 40.0 33.0 22.5 0.0 Tablets (millions per year) 0 10 20 30 40 50 60 The opportunity cost of producing 10.5 million more smartphones and moving from production combination F to production combination E is million tablet devices per year. (Enter your response as a whole number.) (...) Smartphones (millions per year) 50€ 40- 30- 20- 10- 0 A B 10 C D E F G 20 30 40 50 60 Tablet Devices (millions per year) Qarrow_forwardConsider the following production possibilities table that shows different combinations of two goods that can be produced with given resources: Shirts Corn A 0 16 B 2 12 C 4 8 D 6 4 E 8 0 When the country moves from point A to point B, the opportunity cost of producing 1 shirt is bushels of corn. When the country moves from point C to point D, the opportunity cost of producing 1 shirt is bushels of corn.arrow_forwarddefine a production possibility curve and use such a curve to illustrate scarcity,choice and opportunity costarrow_forward
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