Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help this question The diagram below shows the production possibilities curve of Country XYZ Pen (Unit) BO A B 75 C 65 50 D 25

Help this question

image text in transcribed
The diagram below shows the production possibilities curve of Country XYZ Pen (Unit) BO A B 75 C 65 50 D 25 0 2 4 6 8 10 Book (Unit) Answer the following questions a) Define the production possibilities curve. (2 marks) b) State the type of opportunity cost face by the firm. Justify your answer. (2 marks) c) Calculate the opportunity cost by increasing the production of: i) book from C to D. ii) 10 units of book. iii) pen from E to B. iv) 50 units of pen. (4 marks) d) State the following point indicate: i) If the country produces 75 units of pen and 4 units of book. ii) If the country produces 50 units of pen and 6 units of book. iii) If the country produces 25 units of pen and 2 units of book. (3 marks) e) State any two (2) types of opportunity cost and any two (2) shape of PPC. (4 marks)

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

How China Became Capitalist

Authors: Ronald Coase, Ning Wang

1st Edition

1137351438, 9781137351432

More Books

Students also viewed these Economics questions

Question

Did the researcher do a dependability audit?

Answered: 1 week ago

Question

Context, i.e. the context of the information presented and received

Answered: 1 week ago