Question
please answer Q1 Josel owns an energy company. He produces electricity from solar energy and wind energy. He has 1 field of 10 acres. He
please answer
Q1
Josel owns an energy company. He produces electricity from solar energy and wind energy. He has 1 field of 10 acres. He needs 2 acres to produce 1 unit of solar energy and 5 acres to produce 1 unit of wind energy. Suppose that merchants buy and sell the two commodities at
PS=3 and PW=5. Then,
a- The relative price of wind energy is greater than its opportunity cost.
b- The relative price of wind energy is smaller than its opportunity cost.
c- The relative price of solar energy is smaller than its opportunity cost.
d- Statements A and C are correct.
e- None of the above.
Q2
Josel owns an energy company. He produces electricity from solar energy and wind energy. He has one field of 10 acres. He needs 2 acres to produce one unit of solar energy and 5 acres to produce one unit of wind energy. Suppose that merchants buy and sell the two commodities at
PS=3 and PW=5. The value-maximizing point of production Is?
a- 5 units of solar energy and 0 unit of wind energy.
b- 2 units of solar energy and 0 unit of wind energy.
c- 0 unit of solar energy and 2 units of wind energy.
d- 0 unit of solar energy and 5 units of wind energy.
e- None of the above.
Q3
Josel owns an energy company. He produces electricity from solar energy and wind energy. He has one field of 10 acres. He needs 2 acres to produce one unit of solar energy and 5 acres to produce one unit of wind energy. Suppose that merchants buy and sell the two commodities at
PS=3 and PW=5. Using the CPF, the maximum amount of solar energy Josel can CONSUME is
a- 1 unit.
b- 2 units.
c- 3 units.
d- 5 units.
e- None of the above.
Q4
Josel owns an energy company. He produces electricity from solar energy and wind energy. He has one field of 10 acres. He needs 2 acres to produce one unit of solar energy and 5 acres to produce one unit of wind energy. Suppose that merchants buy and sell the two commodities at
PS=3 and PW=5. Using the CPF, the maximum amount of wind energy Josel can CONSUME is
a- 1 unit.
b- 2 units.
c- 3 units.
d- 5 units.
e- None of the above.
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