1. Refer to the production possibilities schedule below assuming full employment. Combination GF E D В A Potato (in thousands MT) Rice (in thousands MT) 105 99 90 75 54 30 45 75 99 117 126 135 A. Plot the production possibilities frontier, placing the amount potato production on the y-axis and the amount of rice production on the x-axis. Label properly all the points and label the graph as PPF . B. Solve for the marginal rate of transformation for combinations G F; F→ E; E→ D; D → C; C → B; and B→ A. Round-up to two decimals and show complete solutions. C. Interpret the marginal rate of transformation for D C and B → A. D. Assume this economy experienced recession due to a pandemic that caused massive unemployment. Illustrate this effect on the graph of PPF on (A) and label this as PPF2. E. Assume that a new production technology was invented in the production of rice. Illustrate this effect on the graph of PPF on (A) and label this as PPF3.

1. Refer to the production possibilities schedule below assuming full employment. Combination GF E D В A Potato (in thousands MT) Rice (in thousands MT) 105 99 90 75 54 30 45 75 99 117 126 135 A. Plot the production possibilities frontier, placing the amount potato production on the y-axis and the amount of rice production on the x-axis. Label properly all the points and label the graph as PPF . B. Solve for the marginal rate of transformation for combinations G F; F→ E; E→ D; D → C; C → B; and B→ A. Round-up to two decimals and show complete solutions. C. Interpret the marginal rate of transformation for D C and B → A. D. Assume this economy experienced recession due to a pandemic that caused massive unemployment. Illustrate this effect on the graph of PPF on (A) and label this as PPF2. E. Assume that a new production technology was invented in the production of rice. Illustrate this effect on the graph of PPF on (A) and label this as PPF3.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 5SCQ: If two painters can paint 200 square feet of wall in an hour, and three painters can paint 275...

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If two painters can paint 200 square feet of wall in an hour, and three painters can paint 275 square feet, what is the marginal product of the third painter?
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