Can some one help me for those questions?

1

Gregg and Mia both make meatloaf and bake bread. It takes Gregg three hours to bake six loaves of bread and two hours to make three meatloaves. It takes Mia three hours to bake eight loaves of bread and two hours to makethree meatloaves.Currently Gregg and Mia do not trade with one another. For this problem assume that Gregg and Mia have linear production possibility frontiers and that they do not trade with anyone else.

a. Suppose Gregg and Mia each have 60 hours this week that they can devote to bread baking and meatloaf cooking. Construct graphs depicting the production possibility frontiers for Gregg and Mia. In your graphs make sure you label the x-axis and y-axis clearly. In your graphs, measure bread on the vertical axis and meatloaf on the horizontal axis.

b. What is Gregg's opportunity cost of producing one loaf of bread?

c. What is Gregg's opportunity cost of producing one meatloaf?

d. What is Mia's opportunity cost of producing one loaf of bread?

e. What is Mia's opportunity cost of producing one meatloaf?

f. Given the above information, who should produce meatloaf? Explain your answer.

g. Given the above information, who should produce bread? Explain your answer.

h. Provide the range of acceptable prices in terms of meatloaf that twenty loaves of bread will trade for given the above information.

i. Provide the range of acceptable prices in terms of bread that thirty meatloaves will trade for given the above information.

j. Construct the joint PPF for Gregg and Mia measuring bread on the vertical axis and meatloaves on the horizontal axis.

2

Use the information in the table below to answer this set of questions. Suppose that each of the following points in the table is a point on the production possibility frontier for Lalaland. Furthermore suppose that the PPF for Lalaland is linear between each of these combinations-for example, the PPF is linear between points A and B, between points B and C, etc.

Combination	Pounds of Butter	Number of Guns
A	1000	0
B	800	110
C	600	150
D	400	175
E	0	200

a. Draw a graph ofLalaland's PPF measuring guns on the vertical axis and butter on the horizontal axis. Label both axes as well as combinations A, B, C, D, and E.

b. Given the above information, what is the opportunity cost of producing 200 more pounds of butter if Lalaland is currently producing at point C?

c. Given the above information, what is the opportunity cost of producing 200 more pounds of butter if Lalaland is currently producing at point B?

d. Given the above information, what is the opportunity cost of producing 100 more pounds of butter if Lalaland is currently producing at point D?

e. Given the above information, what is the opportunity cost of producing one additional gun if Lalaland is currently producing at point B?

f. Given the above information, what is the opportunity cost of producing one additional gun if Lalaland is currently producing at point D?

3

For each of the following scenarios sketch a diagram representing the scenario and then answer the given questions.

a. The market for cell phones is initially in equilibrium. Smart Phone introduces a new phone that provides radically improved services for consumers at the same time that the Federal government decides to implement an excise tax on cell phone producers. Describe the effect of these changes on the equilibrium price and quantity in this market. Assume that this new phone only affects consumers' tastes and preferences.

b. The market for bicycles is initially in equilibrium. The Surgeon General announces that a study has been done that indicates bicycling is a major contributor to good health for those who bicycle regularly. At the same time the price of gasoline increases due to political unrest in the major oil producing regions of the world. Describe the effect of these changes on the equilibrium price and quantity in this market.

c. The market for soft drinks is initially in equilibrium. The price of sugar, a major ingredient in soft drinks, increases while at the same time, the number of producers in the industry doubles. Describe the effect of these changes on the equilibrium price and quantity in this market.

d. The market for leather jackets is initially in equilibrium. Then, the price of labor used to manufacture the jackets increases. Describe the effect of this change on the equilibrium price and quantity in this market.