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I need help with these 4 Microeconomics Questions: Question 3. Production Possibility Frontier and Opportunity Cost [Ch.2,3] (1 mark) Question 3. Production Possibility Frontier and
I need help with these 4 Microeconomics Questions:
Question 3. Production Possibility Frontier and Opportunity Cost [Ch.2,3] (1 mark) Question 3. Production Possibility Frontier and Opportunity Cost [Ch.2,3] (1 mark) Use the following information to answer the next 4 questions. Lalaland is a community that produces two goods, cheese and milk. The following table describes the production possibility frontier (PPF) for Lalaland during 2018. Assume the PPF is linear between the points listed in the table. Points on PPF Milk Gallons Cheese Pounds Question 1 (0.25 points) a. [graphing question] Draw a graph of Lalaland's PPF for 2018 based on the information contained in the table. In your graph, measure cheese (C) on the vertical axis and milk (M) on the horizontal axis. Add a File Record Audio Record Video Question 2 (0.25 points) b. Suppose Lalaland is currently producing at point C on their PPF. What is the opportunity cost of producing one additional pound of cheese? What is the opportunity cost of producing one additional gallon of milk? The opportunity cost of producing one additional pound of cheese (the good on the vertical axis) is [Blank 1]. The opportunity cost of producing one additional gallon of milk (the good on the horizontal axis) is [Blank 2]. Round off your answer to two decimal places. (Note: Rounding a decimal number to two decimal places is the same as rounding it to the hundredths place, which is the second place to the right of the decimal point. For example, 2.83620364 can be round to two decimal places as 2.84, and 0.7035 can be round to two decimal places as 0.70.) Question 3 (0.25 points) c. If Lalaland is currently producing at combination A, what is the opportunity cost of producing 20 more gallons of milk? The opportunity cost of producing 20 more gallons of milk is [Blank 1] pounds of Cheese. Round off your answer to the nearest integg :] Question 4 (0.25 points) d. [written question] What is happening to the opportunity cost of producing more milk if we move from point A to point C? Explain your answer. Add a File Record Audio Record VideoStep by Step Solution
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