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In: Economics

Sarah, Binah and Gila work 40 Hours a week. Binah and Gila can only do two...

Sarah, Binah and Gila work 40 Hours a week. Binah and Gila can only do two activities with their 40 hours of work each week: scrub floors and/or wash window. Assume hours, floors and windows and infinitely divisible into fraction units. I a week of work Binah can wash 9 windows and scrub 0 floors, or scrub 3 floors and wash 0 windows or any linear combination of these two extremes. Gila can wash 12 windows and scrub 0 floors, or scrub 12 floors and wash 0 windows or any linear combination of these two extremes. Sarah is different. She can scrub 7 floors and was 0 windows, or scrub 4 floors and wash 12 windows, or any linear combination between these two points. However, once she get up to 12 windows, or any linear combination between these two points. However, once she gets up to 12 windows she gets tired and from that point on, each additional washed window costs her 1/2 scrubbed floor.

Question 1: Draw three different individual's production possibility frontier curve. Please make sure floors are on the vertical axis while windows are on the horizontal axis. (25 points)

Solutions

Expert Solution

(a) Binah

A week of work Binah can wash 9 windows and scrub 0 floors, or scrub 3 floors and wash 0 windows or any linear combination of these two extremes. The production possibility frontier curve is drawn below where the two extremes are plotted on the vertical axis and horizontal axis respectively.

(b) Gila

Gila can wash 12 windows and scrub 0 floors, or scrub 12 floors and wash 0 windows or any linear combination of these two extremes. The production possibility frontier curve is drawn below where the two extremes are plotted on the vertical axis and horizontal axis respectively.

(c) Sarah

She can scrub 7 floors and was 0 windows, or scrub 4 floors and wash 12 windows, or any linear combination between these two points. However, once she get up to 12 windows, or any linear combination between these two points. However, once she gets up to 12 windows she gets tired and from that point on, each additional washed window costs her 1/2 scrubbed floor.

Since each additional washed window costs her 1/2 scrubbed floor after she washes 12 windows, so the production possibility frontier curve (PPF) gets steeper after the 12th washed window. So. right now she can wash either 4 floor and 12 windows. If she washes 13 window, she can wash 3.5 floors, 14th window = 3 floors, 15th window = 2.5 floors, 16th window = 2 floors, 17th window = 1.5 floors, 18th window = 1 floor, 19th window = 0.5 floor, 20th window = 0 floor.

So, I have plotted 20 on the horizontal axis where Sarah can wash 20 window and 0 floors,

Rahul Sunny answered 1 year ago
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