Answer to Question #47114 in Microeconomics for Yoyo
Good X 0 1 2 3 4 5 6 7 8 9 10
Good Y 110 108 104 98 90 80 68 54 38 20 0
(a) Plot the points in a diagram with x on the horizontal axis and y on the vertical axis. Sketch the PPB by connecting these points.
(b) Calculatetheopportunitycostofthe1st,2nd,3rd,...10thunitofxiftheeconomyisoperatingonthe PPF. Briefly explain why the opportunity cost of x is increasing as more of it is produced.
(c) Suppose the economy is currently producing 5 units of x and 50 units of y. What is the opportunity cost of x given this production point? Explain.
Need a fast expert's response?Submit order
and get a quick answer at the best price
for any assignment or question with DETAILED EXPLANATIONS!