Assume this data represents an economy only pródučing economy wants to shift its production of these two goods from possible output combination C to possible output combination B. Fill in the requested values for the calculation of the opportunity cost of this shift using these answer blanks: opportunity cost = ( %3D ). The good representing the numerator is , the

Assume this data represents an economy only pródučing economy wants to shift its production of these two goods from possible output combination C to possible output combination B. Fill in the requested values for the calculation of the opportunity cost of this shift using these answer blanks: opportunity cost = ( %3D ). The good representing the numerator is , the

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.4P

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The graph below is Mendork's production possibility curve for the only two goods that it produces: quirks and quarks. Quantity of Quarks 800 700 600 500 400 300 200 100 2 4 6 8 10 12 14 16 18 20 Quantity of Quirks Note: If the image does not appear, right-click on the placeholder and choose Show picture or View image. If Mendork's current production is at point A, what is the (approximate) cost of producing one more quirk? a) 50 quarks B b) 100 quarks c) 200 quarks d) One more quark e) 25 quarks
Figure 1 The production possibility frontier ABCDE is a production possibility frontier. It shows the different combinations of goods which can be produced if all resources are fully and efficiently utilised. The economy can produce at any point on the line. It cannot produce at G because the PPF shows the maximum that can be produced. It can produce within the PPF,05 such as at F, but less will be produced than the maximum possible. Non-manufactured goods 50 40 30 20 10 0 A 10 B Ti C 20 30 Manufactured goods G D E 40
500 400 300 200 100 Pumpkin 100 200 300 400 500 Wonderland produces and consumes two goods, pumpkins and sweet potatoes, by using two inputs, labor and capital. The production possibilities frontier of Wonderland is shown above. Which of the following combinations of pumpkins and sweet potatoes is NOT a combination which is "definitely better than the autarky consumption combination (A)"? O 300 units of pumpkins and 200 units of sweet potatoes 100 units of pumpkins and 500 units of sweet potatoes O 300 units of pumpkins and 300 units of sweet potatoes O200 units of pumpkins and 300 units of sweet potatoes
The graph below is Mendork's production possibility curve for the only two goods that it produces-quirks and quarks. Quantity of Quarks 800 700 600 500 400 300 200 100 A 2 4 6 8 10 12 14 16 18 20 Quantity of Quirks Select one: Refer to the graph above to answer this question. If new technology increased the output of quirks by 50%, how many quirks could be produced if 700 quarks were produced? B A. 9 quirks. B. 18 quirks. C. 10 quirks. D. 20 quirks. E. No quirks.
We begin by solving the consumer’s problems: (a) What is the US’s budget constraint? (b) Describe the maximisation problem of the US, set up the Lagrangian, andderive the US’s optimal consumption of smartphones and rice as a functionof the price of smartphones ps, the price of rice pr and the profits of thesmartphone producer πs (you do not need to solve for these profits yet).
An economy produces two goods ,X and Y .lt uses two means of production, labour and capital. A unit of labour can produce either 1unit of X or 4units of Y (or linear combination of the two).A unit of capital can produce either 4units of X or 1unit of Y (or linear combination of the two)there are 100units of each means of production. (i) Draw the production possibility frontier of the economy when the two goods can only be produced by a mixture of both factors. (ii)What will be the opportunity cost of X if the economy produces 50units of X ? (iii) Given that the production technology is linear ,will the opportunity cost of X remain unchanged when we produce 90units of X ? (iv)Briefly explain the difference between the PPC with a constant opportunity cost and the PPC with an increasing opportunity cost as more output of one good is produced. Use a well labeled diagram to explain your answer?
E D C B In the graph above, the shift from curve 'B' to curve 'C' can be attributed to the- O Rising cost of raw materials O Price of a complimentary good decreasing O break-through of new technology O decline in average annual income
Graphically demonstrate how the following economic events influence (ceteris paribus) the relevantsupplyfunction. Label your axes, and specify the market you are discussing. (a) Strong profits in the market for cyber security attract new firms. (b) Low-cost energy reduces the expense of producing and storing ice cream
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person 1 can allocate her 8 hour day between the production of two goods: A and B. Each hour devoted to good B yeilds 2units . whereas each hour devoted to good A produces 4 units. state whether 9 units of good B and 12 units of good A are unattainable, efficient, or inefficient.(state all that applies) select one or more attainable inefficient efficient unattainable
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Consider two individuals, Fred and Barney. In one hour, Fred can produceeither 15 gallons of beer, or 3 gallons of wine. In one hour, Barney can produce2 gallons of beer or 4 gallons of wine. Assume both goods can be produced incontinuous quantities. Assume that each person wants to consume 3 gallons of wine, then as muchbeer as they can. Determine what each person will end up consumingi) when they cannot trade.ii) when they can trade at a price of 1gallon wine = 2 gallons beer.Use this to explain why trade benefits both consumers.