Tuesday

March 3, 2015

March 3, 2015

Posted by **Zann** on Thursday, July 27, 2006 at 5:04am.

1) what will be the production possibility curve?

2) What will be the opportunity cost of producing 50 units of x?

How much y can the economy produce if it only makes y. The 100 units of labor can make 400 y and the 100 units of capital can make 100 y. A total of 500. Lable 500 on the y-axis of your this PPC. Start from here. If the economy gives up 1 unit of capital (1 y) it gets 4 units of x. So, your PPC gets a downward line with a slope of -1/4. After 100 units of capital, the opportunity cost changes, you the economy has to give up labor to get x; it gives up 4 units of y to get 1 x. So, your PPC gets a downward line with a slope of -4. In the end, your PPC crosses the x and y axis at 500 each.

Use the graph to answer #2.

- Economics -
**Anonymous**, Wednesday, October 20, 2010 at 9:35amuybgvglguv

**Answer this Question**

**Related Questions**

Money and Banking - 1. A firm uses capital to produce revenue. The marginal ...

economic theory - assume that a business firm produces two commod ities, X and Y...

maths - A factory produces two products A and B using raw materials p and q. It ...

Accounting - Candace Corporation has decided to introduce a new product that can...

economics - suppose a firm's constant-returns to scale production function ...

Economics - In the short run a firm needs six units of labor to produce eight ...

Math - A rectangle has parameter of 24 unit, if width is 4 unit what is length. ...

Linear Algebra - A company separates iron, zinc, and kryptonite from ore by the ...

Micro economics - Below is the production possibility information of small ...

Economics - Below is the production possibility information of small nations ...