Reference no: EM13833547
Suppose that John takes this semester only two courses, math and economics. He allocates his studying time between the two. Let M and E stand for the number grade in math and in economics, respectively. John has found out that his PPF concerning course grades is given by, M^2 + E^2 = 36, where M and E are nonnegative.
a) Plot the PPF for John.
b) Provide a brief economic interpretation of the slope of PPF in your graphs. Is the principle of increasing costs satisfied on your graph?
c) Which combinations of (M,E) among (6,6),(5,4),(3,0) are attainable? Which points are efficient? Why?
d) Suppose that John bought a new computer that will help him in studying, so that his PPF became M^2 + E^2 = 32, where M and E are nonnegative. Redo part (a).
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