Compute opportunity cost of building two more huts in a day

Assignment Help Econometrics
Reference no: EM13222220

There are six equally productive individuals on the island. Each person can gather 25 coconuts in one day or build one hut in a day.
a) Draw the production possibilities frontier of the trade off between coconuts and huts.
b) Compute the opportunity cost of building two more huts in one day.
c) what would have to occur for three huts to be produced along with 100 coconuts?

Reference no: EM13222220

Questions Cloud

Analyze the effects of the two separate policies : The US government has two different methods to deal with illegal drug use. First, the government has tried a "war on drugs", with the idea of keeping illegal drugs out of the country. Second, the "just say no" campaign has been used to make indivi..
Shift of american health insurance policies : The Shift of American Health Insurance Policies - How the Changes Affect Our Economy, What health program is better financially and morally?
Explain hydrochloric acid is added and no precipoiate forms : To a solution that is known to contain come of the soluble ions from group 1 and no other cations or inteferring substances, 12 drops of 6M hydrochloric acid is added and no precipoiate forms.To clear solution is evaporated to half its volume and ..
What is the corresponding order-up-to level : Suppose Jim is interested in ensuring that the company immediately satisfies all employee salary requirements with a 95% probability. What is the corresponding order-up-to level?
Compute opportunity cost of building two more huts in a day : There are six equally productive individuals on the island. Each person can gather 25 coconuts in one day or build one hut in a day. a) Draw the production possibilities frontier of the trade off between coconuts and huts.
What is an insurable interest : What is the difference between a sale on approval and a sale or return?
Explain a mixture nitrobenzene and 4-methoxybenzoic acid : Propose a step-by-step microscale extraction procedure that could be used to separate a mixture nitrobenzene, 4-methoxybenzoic acid, and benzylamine into the pure compounds using extraction technique.
How to replace toll booths on a toll road in the city : A city engineer knows that she will need 25 million in 3 years to replace toll booths on a toll road in the city. Traffic on the road is estimated to be 20 million vehicles per year. How much per vehicle should the toll be to cover the cost of the..
How globalization affects the gross domestic product : The report should consist of opportunities and threats caused by globalization and the reactions from them. Gabe has also explained that you have done really well on your previous assignments and are proving to be an important addition to the econ..

Reviews

Write a Review

Econometrics Questions & Answers

  What is the cost of producing an additional 50 cars

Suppose a production possibilities frontier includes the following combinatinos: Cars Washing Machines 0 1,000 100 600 200 0 a)graph the PPF, assuming that is has no curved segments b)what is the cost of producing..

  By how much does consumer saving increase initially

If taxes were cut by $200 billion, the resulting spree would amount to Initial increase in consumption = 0.75 3 $200 billion = $150 billion ( a ) By how much does consumer saving increase initially ( b ) How large is the initial spending injection

  What quantity of heroin is sold at market price

Consider the following information about the market for Bayer Heroin-Hydrochloride: P = 10.525 - 0.1QD P= 3.25+1.4QS a. What is the equilibrium market price for heroin b. What quantity of heroin is sold at market price What quantity is demanded

  Calculate the average tax rate

In solving the problem,when your taxable income lies exactly on the border of the 22% bracket ( so that adding one dollar takes it to the beginning of the net bracket), choose the next bracket i.e. 26% as the marginal rate for your federal tax, t..

  What is the equivalent equal annual cost of the fuel

Gasoline costs $0.95 per liter and will increase at 6% per year. At a fuel economy of 9km/liter, what is the present worth cost of fuel for five years of driving 30,000km per year? Use 6.2% interest. What is the equivalent equal annual cost of the..

  How to mark the mean as the balancing point

the claims for a new long-life battery were justified, a consumers' group tested a random sample of 20 batteries. Each battery was subjected to a standard heavy load until burnout, providing the following 20 lifetimes ( in minutes): 65.1 58.4 64.9..

  What is the value of whoey option in period 0

A Whoey option pays the difference between the final price and the maximum price of a stock over the period of the option. For example, if the price of a stock is 200, 220, and 234 in the previous periods (here periods 0, 1, and 2), the maximum pr..

  How large is the multiplier for a change in taxes

Consider the following setup for problems #16-#20: C = 1000 + 0.7(Y - T), I = 400, NX = 300 - 0.2Y, G = 10001.) What are the marginal propensities to consume and to import, respectively 2.) Suppose taxes are 1000, then what is the level of equilibriu..

  What money growth rate should fed aim for to hit inflation

Suppose that a model of the economy suggests that the real interest rate is determined by the equation r= 8.35-%^Y where Y is the level of output, so %^Y is the growth rate of output. Suppose that people expect the Fed to hit its inflation targetI..

  Calculate the profit of each firm at the equilibrium

Suppose that two identical firms produce widgets and that they are the only firms in the market. Their costs are given by C1 = 60Q1 and C2 = 60Q2, where Q1 is the output of Firm 1 and Q2 the output of Firm 2.

  What are the optimal markups for widgets and gadgets

what are the optimal markups for widgets and gadgets Marginal revenue = Price(1 + 1/Price elasticity) since price is positive (always) so we can ignore that part when determining the sign of MR MR is negative if 1+1/elasticity is negative and positiv..

  What is the good a normal good or an inferior good

Assume the point elasticity method.  A 10 percent increase in income brings about a 15 percent decrease in the demand for a good. What is the income elasticity of demand and is the good a normal good or an inferior good

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd