What is the opportunity cost of increasing annual output

Assignment Help Econometrics

Reference no: EM13221416

St Atanagio is a remote island in the Atlantic. The inhabitants grow corn and breed poultry. The accompanying table shows the maximum annual output combinations of corn and poultry that can be produced. Obviously, given their limited resources and available technology, as they use more of their resources for corn production, there are fewer resources available for breeding poultry. Maximum annual output options Quantity of Corn(pounds) Quantity of Poultry(pounds) 1 1200 0 2 1000 300 3 800 500 4 600 600 5 400 700 6 200 775 7 0 850

3. What is the opportunity cost of increasing the annual output of corn from 800 to 1000 pounds?

4. What is the opportunity cost of increasing the annual output of corn from 200 to 400 pounds?

5. Can you explain why the answers to parts 3. and 4. above are not the same? What does this imply about the slope of the production possibility frontier?

Reference no: EM13221416

Questions Cloud

Define the freezing point of the solution : When 6.50 g of the solid is dissolved in 50.0 g of water, the freezing point of the solution is lowered by 5.23 degrees celsius. What is the composition by mass of the solid?

What prices should you charge to maximize revenues : Suppose you are a manager of a firm that produces products X, Y and Z. You know that there are two different types of consumers, type 1 and type 2, who value your products differently. You also know that there 10,000 type1 consumers and 50,000 typ..

What amount would each insurer contribute to the claim : The value of the building is $300,000 and contents are valued at $150,000. The common policy is a CPP with a $1,000 deductible. The isolated restaurant suffers a fire loss resulting in damage to the building of $100,000 and damage to contents of $..

Explain the metal barium crystallizes in a body-centered : The metal barium crystallizes in a body-centered cubic lattice. If the density of barium is 3.51 g/cm3, what is the unit cell volume?

What is the opportunity cost of increasing annual output : Obviously, given their limited resources and available technology, as they use more of their resources for corn production, there are fewer resources available for breeding poultry. Maximum annual output options Quantity of Corn(pounds) Quantity o..

What is the benefit cost ratio for the project : What is the benefit cost ratio for the project?

How could eva approach these particular issues : Analyze the issues and identify five possible causes/sources of the issues - how could Eva approach these particular issues?

Explain inflated to a gauge pressure : The weight of your 1285-kg car is supported equally by its four tires, each inflated to a gauge pressure of 36.0 lb/in2. What is the area of contact each tire makes with the road?

How to enter a market which is serviced by a monopolist : A firm (You) has to decide whether or not to enter a market which is serviced by a monopolist. Currently the monopolists earns $6 economic profits, while you earn $0. If you enter the market and the monopolist doesn't engage in a price war.

User Account

All Pages