Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CAN YOU PLEASE HELP ME WITH SECTION 1 (A-D) AND SECTION 2 (A-D). I REALIZE THAT SECTION 3 IS ASKING FOR DRAWLINGS OF GRAPH AND

CAN YOU PLEASE HELP ME WITH SECTION 1 (A-D) AND SECTION 2 (A-D). I REALIZE THAT SECTION 3 IS ASKING FOR DRAWLINGS OF GRAPH AND IF YOU CAN'T DO IT THAT'S OK. BUT I NEED ALL THE HELP I CAN GET.

Section 1

a) The Shire produces two goodstaters and pipeweed. If all resources are used to produce taters, 1,000 tons per day can be produced. If all resources are used to produce pipeweed (a unique plant used for smoking in pipes and producing great smoke rings), 100 barrels per day can be produced. Draw the shire's PPF for taters and pipeweed. Show the slope of the PPF. Calculate the Shire's opportunity costs for both taters and pipeweed. Draw a point that is unattainable (label it). Draw a point that is inefficient (label it). Draw a point that is efficient (label it).

b) Lady Galadriel the Elf makes magic soil available which increases the production of both taters and pipeweed by 50 percent. Draw the new PPF for the Shire. Show the slope of the PPF. Calculate the new opportunity costs for both taters and pipeweed. Make your changes from the prior question.

c) Gandalf the wizard enjoys smoking pipeweed so much he puts a spell on the tobacco plants so that they double in size and produce twice as much. Draw the new PPF for the Shire. Show the slope of the PPF. Calculate the new opportunity costs for both taters and pipeweed. Make your changes from the prior question.

d) Saruman's Uruk-Hai invade the Shire and destroy half the arable land. The uruks are finally driven out of the Shire by the very large (for hobbits) Meriadoc Brandybuck and Peregrin Took. Draw the new PPF for the Shire. Show the slope of the PPF. Calculate the new opportunity costs for both taters and pipeweed. Make your changes from the prior question.

Section 2

The Shire would like to consume more taters and pipeweed than it currently has. Farmer Cotton and old Gaffer Gamgee are two of the best farmers in the Shire (the Gaffer taught his son Samwise everything he knows). Farmer Cotton can produce 2 barrels of pipeweed a day or 3 tons of taters. The Gaffer can produce 2 barrels of pipeweed or 4 tons of taters (he is regarded as an expert in the matter of the growing of roots, especially potatoes).

a) Calculate the opportunity costs for each farmer for each product (need 4 answers).

b) Draw the PPFs for Farmer Cotton and Gaffer Gamgee. Show the slope of each PPF.

c) Should either farmer specialize, and if so, in what product? Why?

d) What will be the terms of trade for taters in terms of pipeweed? For pipeweed in terms of taters?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Math For Business And Finance An Algebraic Approach

Authors: Jeffrey Slater, Sharon Wittry

1st Edition

0077639626, 9780077639624

More Books

Students also viewed these Economics questions

Question

Why should goals be specific and measurable?

Answered: 1 week ago

Question

Technology

Answered: 1 week ago

Question

Population

Answered: 1 week ago

Question

The feeling of boredom.

Answered: 1 week ago