a. Plot (EXCEL directions are on this site.) these production possibilities data, placing automobiles on the horizontal axis. What is the opportunity cost of the first 2,000 automobiles produced? Between which points is the opportunity cost per thousand automobiles highest? Between which points is the opportunity cost per thousand tons of beef highest? (10 pts)
Points are A-E
Beef starting @ A is 10, 9, 7, 4, 0
Autos starting @ A is 0, 2, 4, 6, 8
I'm okay with the graph and the first 2 parts but am unsure on part there since the variation is 2,000 per point
If you are trying to "cut and paste" it does not work here. You will need to type everything out.
Sra
Thanks I finally figured it out!
To plot the production possibilities data in Excel, you can follow these steps:
1. Open Excel and create a new worksheet.
2. Enter the labels "Automobiles" and "Beef" in cells A1 and B1, respectively.
3. Enter the data points for automobiles and beef in column A (starting from A2) and column B (starting from B2) as follows:
- Automobiles: 0, 2, 4, 6, 8
- Beef: 10, 9, 7, 4, 0
4. Select the range of cells containing the data points in both columns (A2 to B6).
5. Click on the "Insert" tab in the Excel ribbon.
6. Choose the "Scatter" chart type under the "Charts" section and select the "Scatter with Straight Lines" chart subtype.
Now, let's answer your questions using the graph:
1. What is the opportunity cost of the first 2,000 automobiles produced?
To determine the opportunity cost of the first 2,000 automobiles produced, locate the point on the graph where the quantity of automobiles is 2,000 (horizontal axis). Then move vertically to find the corresponding point on the Beef curve. The Beef quantity at that point represents the opportunity cost. In this case, since the production possibilities frontier is not specifically defined beyond the data points given, you'll need to estimate the opportunity cost by visually approximating the value based on the data.
2. Between which points is the opportunity cost per thousand automobiles highest?
Opportunity cost per thousand automobiles can be calculated by dividing the change in the quantity of beef by the change in the quantity of automobiles between two points. In this case, the opportunity cost per thousand automobiles is highest between two points where the Beef curve is steepest. From the given data, this occurs between points A and B.
3. Between which points is the opportunity cost per thousand tons of beef highest?
Similarly, opportunity cost per thousand tons of beef can be calculated by dividing the change in the quantity of automobiles by the change in the quantity of beef between two points. In this case, the opportunity cost per thousand tons of beef is highest between two points where the Automobiles curve is steepest. From the given data, this occurs between points C and D.