Module 1 assignment Suppose a production possibilities frontier includes the following combinations:

Question # 00025988 Posted By: jia_andy Updated on: 09/15/2014 01:07 PM Due on: 01/31/2015
Subject Economics Topic Macroeconomics Tutorials:
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Suppose a production possibilities frontier includes the following combinations:

Cars Washing Machines

0 1,000

100 600

200 0

a. Graph the PPF, assuming that it has no curved segments.

b. What is the cost of producing an additional car when 50 cars are being produced?

Let’s redraw the PPF to reflect the cars on the x-axis and the Washing Machines on the Y-Axis

c. What is the cost of producing an additional car when 150 cars are being produced?

d. What is the cost of producing an additional washing machine when 50 cars are being produced? When 150 cars are being produced?

e. What do your answers tell you about opportunity costs?

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  1. Tutorial # 00025369 Posted By: jia_andy Posted on: 09/15/2014 01:09 PM
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    The solution of ECON 251 Principles of Macroeconomics: Module 1 assignment Suppose a production possibilities frontier includes...
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