Consider the data for a hypothetical economy

Assignment Help Business Economics
Reference no: EM131424589

Consider the following data for a hypothetical economy.

Guns (hundreds): 8 7 5 3 1 0

Butter(tons): 0 4 10 14 16 16.25

a) Graph the ppf

b) calculate the oppurtunity cost of guns in terms of butter and that of butter in terms of guns.

c) If you observed this economy producing 700 guns and 3 tons of butter, what would you conclued about how this economy is solving the 'how' problem?

d) If you observed this economy at spme later date producing 700 guns and 12 tons of buter, what would you conclude?

Reference no: EM131424589

Questions Cloud

Markets becoming more competitive because of new technology : Are U.S. markets becoming less competitive because of mergers and acquisitions? Are U.S. markets becoming more competitive because of new technology? Are U.S. markets becoming more or less competitive because of globalization? Is enough information a..
What is the expected unit sales increase to result : The short-run elasticity of demand for a consumer product is measured from NPD data at epsilon = -2.9. What is the expected unit sales increase to result from a 10 percent price decrease? If the contribution margin for the value chain is 60 percent, ..
What is land only time-adjusted price per acre for each sale : You are appraising a 480 acre irrigated farm with a current valuation date. Improvements contribute $210,000 to the property value. The property is located outside Lotta-Water Irrigation District; irrigation water is obtained from an on-site well and..
More expensive product result in higher willingness to pay : Sometimes the more expensive product wins since higher customer willingness to pay more than offsets the higher price. For example, Starbucks' market share exceeds that of nearly every rival, despite higher prices. Please provide pictures of two prod..
Consider the data for a hypothetical economy : Graph the ppf. calculate the oppurtunity cost of guns in terms of butter and that of butter in terms of guns. If you observed this economy producing 700 guns and 3 tons of butter, what would you conclued about how this economy is solving the 'how' pr..
What would be maximum allowable loss in number of unit sold : A retailer is considering a 33% off sale on blenders currently priced at $54. The retailer pays $29 per blender from the manufacturer. D. Instead of a sale management is considering a price increase to $59. What would be the maximum allowable loss in..
Determine the labor force and the number of employed : Suppose that the labor force participate rate is 79%, the total working-age population is 100 million, and the number of unemployed is 2.5 million. Determine: (i) the labor force; (ii) the number of employed workers; (iii) the unemployment rate; and ..
What is the opportunity cost of apples in terms of bananas : Home has 600 units of labor available. It can produce two goods, apples (QA) and bananas (QB). The unit labor requirement in apple production is 3, while it is 2 in banana production. Graph Home’s production possibilities frontier with the production..
What are the implications of the informal economy for firms : What are the implications of the informal economy for firms that operate only in the formal economy? Identify and assesses the context of the problem presented in the Heinz and Beechnut merger case. How do changes in the value of the U.S. dollar affe..

Reviews

Write a Review

Business Economics Questions & Answers

  Implication about the velocity of money factor

How does the quantity theory of money and the liquidity preference theory differ in their implication about the velocity of money factor? How would you expect velocity to typically behave over the course of the business cycle?

  Trade magazine that publishes-power-sizing exponents

Padre works for a trade magazine that publishes. lists of Power-Sizing Exponents (PSE) that reflect economies of scale for developing engineering estimates of various types of equipment. Padre has been unable to find any published data on the VMIC ma..

  Future human computer interface

The video about VR and Facebook includes a discussion that virtual reality platform will be a future human computer interface. In terms of user experience, how would you envision the future of Faceboook based on this argument?

  General rule of human behavior be developed

Jim Range has to choose between buying more soda or more pasta for the week. He has a fixed income and he knows the prices of both products. Using indifference curves and budget constraints, illustrate the amount of soda and pasta that Jim will purch..

  Assume all employees are paid the same wage

Assume all employees are paid the same wage. A decreasing marginal product of labor, while still a positive number, tells us that marginal cost must be increasing. A watch manufacturer finds that at 1,000 units of output, its marginal costs are below..

  Calculate the excess burden of the tax

The annual demand for liquor in a certain state is given by the following equation Qd= 500,000 - 20,000P, where P is the price per gallon and Qd is quantity of gallons demanded per year. The supply of liquor is given by the equation Qs= 30,000P. Calc..

  Monetary easing and some attempt at structural reform

Abenomics seems to me like a straightforward and modern plan of economic revelation through monetary easing and some attempt at structural reform. While it's still early, it looks like many of the predicted effects of this approach have begun to mate..

  Industries have recorded remarkable growth in productivity

The country of Alcazar has been growing at an impressive pace for the last five years. With improvements in technology, many industries have recorded remarkable growth in productivity

  There is bubble in the higher education market

Paul Schumer and Jim Miller, two analysts at a research institute, discuss the rising costs of higher education in their country. Paul feels that escalating tuition fees in colleges and universities are indicative of a bubble in the higher education ..

  High unemployment and excess industrial capactiy

By using clearly labeled AS and AS curves to illustrate your points, discuss the impacts of the following events on the equilibrium price level and equilibrium level of output in the short run. An expansionary fiscal policy with the economy operating..

  What challenges did you face

If you have been employed in an organization that has gone through bald ridge or ISO process, share your experiences. What challenges did you face.

  Qassume the followingi the public holds no currencyii the

q.assume the followingi. the public holds no currency.ii. the ratio of reserves to deposits is 0.1.iii. the demand for

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