02 Jun Question Answer the 3 questions below based upon the following in
Question
Answer the 3 questions below based upon the following information. Assume that in a hypothetical economy with full employment and fixed resources and technology, the following amounts of manufacturing and service goods can be produced in a year. (2 points each)
Manufacturing
Goods (millions)
Manufacturing goods Service Goods
(Millions of units) (Millions of units) 60
0 50 50
20 40
34 30 40
43 20
48 10 30
50 0
20
10
0 10 20 30 40 50 60
Service Goods (millions)
a. What is the opportunity cost of increasing the production of manufacturing goods from 20 million to 34 million?
b. Is it possible for this economy produce 40 million manufacturing goods and 30 million service goods? (It may help to draw in the production possibilities frontier.) Why or why not?
c. Is it possible for this economy produce 35 million manufacturing goods and 10 million service goods? (It may help to draw in the production possibilities frontier.) What does this combination represent?
4. The following table summarizes information on the market for economics textbooks:
Demand Schedule Supply Schedule
Price Quantity Demanded per Year Price Quantity Supplied per Year
$80 2,100 $80 100
90 1,100 90 300
100 600 100 600
110 350 110 1,000
120 225 120 1,500
a. What is the market equilibrium price and quantity of textbooks? Plot the supply & demand curves below and indicate equilibrium, labeling completely. (2 pts.)
b. In order to quell outrage over tuition increases, the college places a $90 limit on the price of textbooks. How many textbooks will be sold now? Will a shortage or surplus develop? If so, label the shortage or surplus and calculate the amount. (3 pts.)
c. Suppose that automated publishing increases the efficiency of textbook production. Show graphically the likely effect of this innovation on the equilibrium price and quantity. (Shift the appropriate curve, and draw and label it using different colored ink) (3 pts.)
Price
Qty.
NOTE: You should try to use the “Econ Graph Tool” in Blackboard and submit the files containing your graphs with your problem set. If you can’t figure out the graphing tool software, you can mail your problem set using the address in the syllabus.
A Production Schedule for Knit Hats
(Fixed Resources: 1 plant and 3 knitting machines)
Labor Hat Output (per day)
0 0
1 21
2 50
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.