What is the opportunity cost of increasing butter production

Assignment Help Business Economics

Reference no: EM131424686

Draw a production possibilities frontier (PPF) with missiles on the horizontal axis and butter on the vertical axis, illustrating these options, showing points A – F. Option missiles butter A 0 30 B 1 28 C 2 24 D 3 18 E 4 10 F 5 0 a. Can this country produce 24 units of butter and 4 missiles? Explain. Where would this point lie relative to the PPF? b. What is the trade-off when moving from point A to B? c. What is the opportunity cost of increasing missile production from 3 – 4 units? d. What is the opportunity cost of increasing butter production from 18 – 24 units? e. What is the maximum amount of butter that can be produced, if all resources are devoted to butter production? f. Can this country produce 2 missiles and 10 units of butter? Yes or no? Where would this point lie relative to the PPF?

Reference no: EM131424686

Questions Cloud

Earn an effective annual rate of return : You are planning for retirement 34 years from now. You plan to invest $4, 200 per year for the first 7 years, $6, 900 per year for the next 11 years, and $14, 500 per year for the following 16 years (assume all cash flows occur at the end of each yea..

Calculate the price elasticity of demand : Suppose that, in a bold move, the owners of the movie theater in Moscow decide to raise the price of general admission movie tickets from $7 to $9. Calculate the price elasticity of demand for those under 30 years old. Then calculate the price elasti..

Constant opportunity cost between cookies and lemonade : In Kessy’s old kitchen, he could bake 10 cookies or mix 15 glasses of lemonade in a day. Now he has a bigger oven and refrigerator. a. First, draw Kessy’s initial PPF assuming constant opportunity cost between cookies and lemonade. Label it PPF1.

Concept models for division : Explain why the solution to problem 7 d (above) is greater than the number you begin with, (which is 5). Use one of our concept models for division (subtractive or partitive) or a real world example to demonstrate your thinking.

What is the opportunity cost of increasing butter production : Draw a production possibilities frontier (PPF) with missiles on the horizontal axis and butter on the vertical axis, illustrating these options, showing points A – F. What is the maximum amount of butter that can be produced, if all resources are dev..

Hat is pattern of trade between these countries as predicted : Television production requires 100 hours of labor and 20 acres of land. Rice, on the other hand, requires 2 hour of labor and 4 acres of land for every pound of rice produced. Home has 200 million labor hours and 400 million acres of land, while Fore..

Which good is labor intensive and land intensive : Suppose that a country produces wine (W) and cheese (C) using its supply of 400 hours of labor (labor hours) and 600 acres of land (acres) (T). To produce a gallon of wine requires 10 hours of labor and 5 acres of land. A pound of cheese requires 4 h..

In order to grow manufacturing jobs : In order to grow manufacturing jobs, suppose the federal government decides to give drivers refund $5,000 when they file their income taxes if they purchase a new car that was made in US. Will this policy affect the demand or supply curve and which w..

Construct the world relative supply curve : Assume there are two countries, Home and Foreign. Home has 1000 labor hours available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 2, while in banana production is 4. Construct the world relative su..

User Account

All Pages