David and Morgan are farmers. Each one owns an 18-acre plot of land. The following table shows the amount of zucchini and watermelon each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing zucchini or watermelon or to produce zucchini on some of the land and watermelon on the rest. DavidMorganWATERMELON (Pounds)On the following graph, use the blue line (circle symbol) to plot David's production possibilities frontier (PPF), and use the purple line (diamondsymbol) to plot Morgan's PPF.18016214412610890725436180ZucchiniWatermelon(Pounds per acre) (Pounds per acre)123186090180270 360 450 540 630 720ZUCCHINI (Pounds)810 900David's PPFMorgan's PPF? has an absolute advantage in the production of zucchini, andDavid's opportunity cost of producing 1 pound of watermelon ispound of watermelon iszucchini.has an absolute advantage in the production of watermelon.pounds of zucchini, whereas Morgan's opportunity cost of producing 1opportunity cost of producing watermelon than Morgan,has a comparative advantage in the production ofpounds of zucchini. Because David has ahas a comparative advantage in the production of watermelon, and

Production Possibility Frontier (PPF) refers to the possible maximum combinations of two goods that…

David and Morgan are farmers. Each one owns an 18-acre plot of land. The following table shows the amount of zucchini and watermelon each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing zucchini or watermelon or to produce zucchini on some of the land and watermelon on the rest.

David and Morgan are farmers. Each one owns an 18-acre plot of land. The following table shows the amount of zucchini and watermelon each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing zucchini or watermelon or to produce zucchini on some of the land and watermelon on the rest.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter2: Scarcity And Opportunity Costs

Section: Chapter Questions

Problem 7E

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Given the following diagram of a production possibilities frontier for a country. Assume that this country produces only two types of goods, capital goods (K) and consumer goods (C). (Graph is not drawn to scale.) CAPITAL GOODS (K) LACO,250) B(409200) c C200, ISo) D (300, l00) E(GO0,0) CONSUMER 600as (C) e. Suppose that there is a technological improvement in producing consumer goods that results in twice as many units of consumer goods being produced from the available resources in this economy. Draw the new production possibility frontier for this economy given this change. Assume that there are no changes in technology with regard to capital good production.
Given the following diagram of a production possibilities frontier for a country. Assume that this country produces only two types of goods, capital goods (K) and consumer goods (C). (Graph is not drawn to scale.) CAPITAL GOODS(K) LACO,250) B(109 200) C C200, ISo) D(30, l00) E(GO0,0) CONSUMER 6000S (C) c. What is the opportunity cost of producing 1 more unit of capital goods if this economy is currently producing at point C?
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