Problem 1
Opportunity cost would be 2 chairsThe opportunity cost would be "½" a chair
A) The allocation is not efficient
Bill can attain efficiency by just producing 20 more chairs utilizing the same resources. Thus, with this, the produXXXXX is XXXXX to XXXX flawlessly XX the production possibility XXXXXXXX, XXXX, efficiency.Opportunity cost XXXXX XX 2 XXXXXX
Opportunity cost= XXXXXX in XXX XXXXXX XX chairs/ change in XXX number XX XXXXXX
(XX-100)/ (XX-0) = |2|
This means XXXX a XXXX XXXXXXXX in the number XX tables, XXX number of XXXXXX fall by X
3) The XXXXXXXXXXX cost XXXXX XX "X" a chair
Opportunity XXXX= change in the XXXXXX of tables/ change in the number XX XXXXXX
(10-X)/ (80-100) = |1/X|
This XXXXX that for any unit XXXXXXXX in XXX XXXXXX of XXXXXX, the XXXXXX of XXXXXX XXX to XXXX XX ½.
4) a) XXX allocation XX XXX XXXXXXXXX XXXXXXX it XXXXX below XXX production XXXXXXXXXXX frontier.
b) Bill XXX attain efficiency XX XXXXXXXXX XX XXXX chairs or XX more XXXXXX utilizing the XXXX XXXXXXXXX. With XXXX, XXX production is going XX fall flawlessly on XXX production possibility frontier hence efficiency.
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Problem X
Suppose XXX market for corn XX given by the XXXXXXXXX XXXXXXXXX for XXXXXX and XXXXXX:
XX = 2p − X
QD = XX − p
XXXXX X is the XXXXXXXX in XXXXXXXX XX XXXXXXX XXX year XXX p XX XXX XXXXX.
Calculate XXX equilibrium XXXXX XXX quantity.Sketch XXX supply XXX demand curves XX a graph XXXXXXXXXX XXX equilibrium quantity XXX XXXXX.XXXXXXXXX the price-elasticity XX demand XXX supply at the equilibrium XXXXX/XXXXXXXX.The XXXXXXXXXX XXXXXX the XXXXXX XXXXX XX XXXXX XXXXXXXXXXXX and announces a XXXXX XXXXX equal XX $7 XXX XXXXXX.Would there be a surplus or a XXXXXXXX?XXXX XXXXX be XXX quantity of excess XXXXXX or XXXXXX XXXX XXXXXXX?Use XXX graph to show you results.
XXXXXX:
XX - X = 13 - p p* = X X* = XQS = X(7) - 2 = XX
XX = 13 - (7) = 6 QS > QD, XXXX, there is a surplus.
XXXXXX supply = 12 - X = X million bushels/yr
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