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Aisha and Betty are two different economic agents with different skills, and are owners of two different commodity production units in which they are able
Aisha and Betty are two different economic agents with different skills, and are owners of two different commodity production units in which they are able to produce only corn and iron, using only one input, labor. Suppose each currently produces both corn and iron, and they do not trade. And assume that they could produce the following combinations of corn in bushels per month and iron in tons per month: Aisha's Production Unit Labor Input Total Output Marginal ( Numer of Workers) (Corn in bushels) Product O O 20 50 40 90 60 120 0 80 140 100 150Labor Input Total Output Marginal (Numer of Workers) (Iron in tons) Product 20 I w 40 6 60 9 0 80 12 100 15 Alternative Bushels of Corn Tons of Iron I 150 II 140 3 III 120 6 IV 90 9 V 50 12 VI 15 Betty's Production Unit Input Total Output Marginal (Numer of Workers) (Corn in bushels) Product O O 20 75 O 40 175 0 60 300 80 450 100 625 Labor Input Total Output Marginal ( Numer of Workers) (Iron in tons) Product 20 6 O 40 18 60 36 O 30 50 0 100 90 Alternative Bushels of Corn Tons of Iron I 625 O II 450 6 III 300 18 IV 175 36 V 75 60 VI 90a) Calculate the marginal product of labor on the tables for both corn and iron productions in Aisha's and Betty's productions units on a table. b) Draw the individual production curves for both corn and iron productions for Aisha and Betty, being as exact and neat as possible. Put \"number of workers\" as input on the positive horizontal axis. Assume that the dots dene a. complete curve. State what kind of marginal returns is presented in the production relations for each production curve, i.e., decreasing, constant, increasing marginal returns. c) Draw the PPF for corn and iron for both Aisha and Betty, being as exact and neat as possible. Put iron on the horizontal axis. Assume that the dots define a complete curve. (I) Is it possible or efficient to produce 100 bushels of corn and 10 tons of iron for Aisha and Betty? Explain why? e) If both Aisha and Betty are currently producing Alternative III, the average unit opportunity cost of moving to Alternative II (the average opportunity cost of each unit increase in corn production) is .......... tons of iron in Aisha's production unit, and tons of iron in Betty's production unit. 1') Is the opportunity cost of producing corn higher or lower moving from alternative VI to V than moving from alternative II to I for Aisha and Betty? Why? Compare your results
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