Subpart (a): Explanation Opportunity cost of a car is calculated as follows: Opportunity cost of a car = Cost of bushels of wheat Cost of car = 30 2 = 15 bushels of wheat Opportunity cost of a car is 15 bushels of wheat Subpart (b): To determine Draw production possibility frontier . Subpart (c): To determine Specialization and increase in consumption.

Calculate the opportunity cost .

Name: To determine: Calculate the opportunity cost .
Uploaded: 2021-04-08
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Description: Subpart (a): Explanation Opportunity cost of a car is calculated as follows: Opportunity cost of a car = Cost of bushels of wheat Cost of car = 30 2 = 15 bushels of wheat Opportunity cost of a car is 15 bushels of wheat Subpart (b): To determine Draw production possibility frontier . Subpart (c): To determine Specialization and increase in consumption.

Principles of Microeconomics

7th Edition

ISBN: 9781305156050

Author: N. Gregory Mankiw

Publisher: Cengage Learning

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Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate …

Question

Chapter 3, Problem 4PA

Subpart (a):

To determine

Calculate the opportunity cost.

Subpart (b):

To determine

Draw production possibility frontier.

Subpart (c):

To determine

Specialization and increase in consumption.

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