Question
1.Home Country has 1,500 units of labour available. It can produce two goods: apples and bananas. The unit labour requirement in apple production is 5,
1.Home Country has 1,500 units of labour available. It can produce two goods: apples and bananas. The unit labour requirement in apple production is 5, while in banana production, it is 3.
a.Graph Home Country's production possibility curve (PPC). Show all the steps involved in deriving this PPC.
b.What is the opportunity cost of apples in terms of bananas?
c.In the absence of trade, what would the price of apples in terms of bananas be? Why?
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Introduction to Behavioral Economics
Authors: David R. Just
1st edition
0470596228, 978-0470596227
