part 1: production possibilities frontier - graphing practice\n1. first, graph the following production…

part 1: production possibilities frontier - graphing practice\n1. first, graph the following production possibilities frontier (ppf). then answer the questions below.\ngood x\npoint good y good x\na 0 24\nb 2 20\nc 4 16\nd 6 12\ne 8 8\nf 10 4\ng 12 0\na) the opportunity cost of increasing from point a to point b is _______________ of good x\nb) the opportunity cost of increasing from point b to point c is _______________ of good x\nc) the opportunity cost of increasing from point a to point c is _______________ of good x\nd) the opportunity cost of increasing from a to g is _______________ of good x\ne) what is the shape of the curve based on the data points? _______________\nf) why does it reflect that shape? _______________

part 1: production possibilities frontier - graphing practice\n1. first, graph the following production possibilities frontier (ppf). then answer the questions below.\ngood x\npoint good y good x\na 0 24\nb 2 20\nc 4 16\nd 6 12\ne 8 8\nf 10 4\ng 12 0\na) the opportunity cost of increasing from point a to point b is _______________ of good x\nb) the opportunity cost of increasing from point b to point c is _______________ of good x\nc) the opportunity cost of increasing from point a to point c is _______________ of good x\nd) the opportunity cost of increasing from a to g is _______________ of good x\ne) what is the shape of the curve based on the data points? _______________\nf) why does it reflect that shape? _______________

Answer

Explanation:

Step1: Calculate opportunity - cost from A to B

Opportunity cost is the loss of Good X. At A, Good X = 24; at B, Good X = 20. So, $24 - 20=4$.

Step2: Calculate opportunity - cost from B to C

At B, Good X = 20; at C, Good X = 16. So, $20 - 16 = 4$.

Step3: Calculate opportunity - cost from A to C

At A, Good X = 24; at C, Good X = 16. So, $24 - 16=8$.

Step4: Calculate opportunity - cost from A to G

At A, Good X = 24; at G, Good X = 0. So, $24-0 = 24$.

Step5: Determine curve shape

The shape of the curve is a straight - line because the opportunity cost of producing more of Good Y (in terms of Good X) is constant (4 units of Good X per 2 - unit increase in Good Y).

Step6: Explain curve shape

The constant opportunity cost is due to resources being equally suitable for producing both goods, resulting in a linear PPF.

Answer:

a) 4 b) 4 c) 8 d) 24 e) Straight - line f) Constant opportunity cost due to equally suitable resources for both goods.