Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

Economics


Home >> Business Economics

NOTE: Production Possibility Frintier and Production Possibility Curve (PPC) are the same thing.

1. Suppose that Jeffrey can produce a maximum of 50 units of corn, 20 units of grapes, or some linear combination of these extremes. Likewise, Sarah can produce a maximum of 10 units of each, or some linear combination.

(a) Which person has the absolute advantage in corn production, and which has the comparative advantage in corn production? What about grapes?

(b) Draw the production possibility frontier for Jeffrey and Sarah, jointly (only one PPF with Jeffrey and Sarah combined), being sure to explain your graph.

(c) Show what happens to the production possibility frontier if:

(i) a technological improvement enables Jeffrey and Sarah to produce twice as much corn;

 (ii) an illness causes Sarah to not be able to work.

2. Bruce change owns his own bookkeeping firm, and runs it out of the basement in his home.

(a) Bruce claims that his firm is low cost because he doesn't have to pay any rent for an office. Is this true? Explain.

(b) Bruce recently turned down an offer to be postal worker for $55,000 per year. His income from bookkeeping is $48,000 per year. Is his bookkeeping business profitable?

(c) Bruce loves to be his own boss, and this is worth $10,000 per year to him. Does this change your answer in (b)? How so?

3. Suppose someone is caught committing a crime. Suppose the judge can either given the criminal a fine or a jail sentence. The criminal is indifferent between the two punishments. Does each punishment have the same opportunity cost to society?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91723840

Have any Question?


Related Questions in Business Economics

A professional baseball pitcher takes 1566 seconds to throw

A professional baseball pitcher takes 15.66 seconds to throw each? pitch, on average. Assume the? pitcher's times per pitch follow the normal probability distribution with a standard deviation of 2.6 seconds. Complete pa ...

Determine whether the given value is a discrete or

Determine whether the given value is a discrete or continuous variable. People are asked to state how many times in the last month they visited their family doctor.

Istrade zero sum explainthe ways in which itisandthe ways

Is trade zero sum? Explain the ways in which it is and the ways in which it is not as well as an overall assessment explaining why or why not?

A production system has two spares of a critical component

A production system has two spares of a critical component that have average uptime 1/lamba = 1 month. Find the probability that the 3 components (the operating one and the two spares) will last more than 6 months. Assum ...

A how can use the criteria for evaluating alternative

a) How can use the criteria for evaluating alternative methods of government finance to assess the most important revenue proposals of the 2018/19 budget. b) In the case tax is most important revenue proposals of the 201 ...

We went over this problem in class but i dont understand

We went over this problem in class but I don't understand what exactly the professor did, so could someone explain step by step how to approach a problem like this? I have a homework assignment with problems similar to t ...

Simplifya factor and find the vertex form x2 6x 8b factor

Simplify a) Factor and find the vertex form x^2 +6x + 8 b) Factor the h value of of the vertex of 2x^2 - 10x - 30 c) Find the x-intercept and y-intercept of 5x - 4y=30

What are three ways that even every forecast model should

What are three ways that even every forecast model should be evaluated to obtain the best forecast result.

Identify at least five factors that are likely to cause the

Identify, at least, five factors that are likely to cause the increase in the demand for nurses and five factors that are likely to cause a decline in the supply of nurses, or the failure of supply to keep up with demand ...

Determine the internal rate of return for a project that

Determine the internal rate of return for a project that costs -$149,500 and would yield after-tax cash flows of $23,000 the first year, $25,000 the second year, $28,000 the third year, $30,000 the fourth year, $34,000 t ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved