Suppose a firm has the following production possibilities data (left columns in the table below), please...

Suppose a firm has the following production possibilities data (left columns in the table below), please determine its Marginal Cost (MC) data and write them in the right columns.

PPF		MC
Pizza (per hour)	Bagel (per hour)	Pizza (per hour)	Bagel (per hour)
0	30	-	-
2	28
4	24
6	18
8	10
10	0

Expert Solution

Pizza (Per hour )	Marginal cost(in terms of bagel)	Bagel (Per hour)	Marginal cost(In terms of pizza)
0	0	0	0
2	2	10	2
4	6	18	2
6	6	24	2
8	8	28	2
10	10	30	2

In order to produce Two extra unit of pizza per hour we have go give up 2 bagels at first which subsequently changes as per the marginal rate of substitution.

Similarly in case of bagel, for producing 10 units per hour we have to give up 2 units of pizzas as per marginal rate of substitution, which subsequently changes accordingly.

Rahul Sunny answered 3 years ago

Use the following table to answer the question below. Dave's Production Possibilities Schedule Simon's Production Possibilities...

Use the following table to answer the question below. Dave's Production Possibilities Schedule Simon's Production Possibilities Schedule Pounds of Green Beans Pounds of Corn Pounds of Green Beans Pounds of Corn 0 160 0 80 20 120 40 60 40 80 80 40 60 40 120 20 80 0 160 0 Assume Dave consumes 40 pounds of green beans and 80 pounds of corn without trade. Also, assume that Simon consumes 80 pounds of green beans and 40 pounds of...

Below is the production possibilities table for the country of Lavaland.

Below is the production possibilities table for the country of Lavaland. (8 Points)Choice Number of tanks Number of pizzaA 0 15B 4 14C 7 12D 9 9E 11 5F 12 0If the economy starts at point A with production of 0 tanks and 15 pizzaWhat is the opportunity cost of producing 4 tanks more?What is the opportunity cost of one tank more? Show you calculation to receive full credit.What is the opportunity cost of one tank more if this economy...

Answer the question on the basis of the data given in the following production possibilities table....

Answer the question on the basis of the data given in the following production possibilities table. Production Possibilities (Alternatives) A B C D E F Capital Goods 5 4 3 2 1 0 Consumer Goods 0 5 9 12 14 15 Refer to the table. A total output of 3 units of capital goods and 4 units of consumer goods Multiple Choice is irrelevant because the economy is capable of producing a larger total output. will result in the maximum...

The table below contains the Production Possibilities Frontier (PPF) data for Country ABC. It contains the...

The table below contains the Production Possibilities Frontier (PPF) data for Country ABC. It contains the maximum possible combinations of guns and butter that can be produced in a given period of time: Units of Guns (thousands) Units of Butter (kilos) 14 5 11 6 9 8 8 11 A. What is the opportunity cost of moving from producing 9 thousand units of guns to 14 thousand units of guns stated in terms of 1 unit of guns? B. Explain...

5. Answer the questions below on the basis of the following production possibilities data for Flotsam...

5. Answer the questions below on the basis of the following production possibilities data for Flotsam and Jetsam. All data are in tonnes. FLOTSAM PRODUCTION POSSIBILITIES: A B C D E Pants 60 45 30 15 0 Shirts 0 15 30 45 60 JETSAM PRODUCTION POSSIBILITIES: A B C D E Pants 20 15 10 5 0 Shirts 0 15 30 45 60 a. Give any five reasons why trade should take place. b. If trade occurs between Flotsam and...

Use the following table to answer the question. Dave's Production Possibilities Schedule Simon's Production Possibilities Schedule...

Use the following table to answer the question. Dave's Production Possibilities Schedule Simon's Production Possibilities Schedule Pounds of Green Beans Pounds of Corn Pounds of Green Beans Pounds of Corn 0 160 0 80 20 120 40 60 40 80 80 40 60 40 120 20 80 0 160 0 Assume Dave consumes 40 pounds of green beans and 80 pounds of corn without trade. Also, assume that Simon consumes 80 pounds of green beans and 40 pounds of corn...

The data in columns 1 and 2 in the table below are for a private closed...

The data in columns 1 and 2 in the table below are for a private closed economy. GDP A.E. Private Closed Economy Exports Imports Net Exports A.E. Private Open Economy 200 240 20 30 250 280 20 30 300 320 20 30 350 360 20 30 400 400 20 30 450 440 20 30 500 480 20 30 550 520 20 30 a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy. b. Now open...

Following is a production possibilities table for two goods: Trucks and mobiles. The table is constructed...

Following is a production possibilities table for two goods: Trucks and mobiles. The table is constructed using the usual assumptions. Choices Trucks (T) Mobiles (M) The opportunity cost for trucks A 0 110 B 1 105 C 2 96 D 3 84 E 4 63 F 5 36 G 6 0 What are the assumptions of drawing the PPF or PPC? What are the shift factors of the PPF or PPC? What is the opportunity cost of 3rd and 5th...

The table below shows the production possibilities of two countries, X and Y, of two goods,...

The table below shows the production possibilities of two countries, X and Y, of two goods, A and B, given a fixed amount of resources and particular technology. (For country X: a worker can produce per month 78A or 26B. For country Y a worker can produce per month Y: 96A or 48B). A B X 78 26 Y 96 48 1. Which country has the absolute advantage in A, and which country has the absolute advantage in B? (1...

the table below shows the production possibilities of two countries saudia arabia and usa of two...

the table below shows the production possibilities of two countries saudia arabia and usa of two goods oil and beef given a gixed amoumt of resources . oil, beef saudi 500 . 500 usa 500.200 a) which country has an absolute advantage in oil and which has absolute advantage in beef b) calculate saudis opportunity cost of oil in terms of beef c) if the two countries where to specialize and trade with one another which country would import oil...

Question