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Please help me with these question. Thank you. Suppose an economy has 3 workers: Chip, Deon, and Hana. These workers can either put their time
Please help me with these question. Thank you.
Suppose an economy has 3 workers: Chip, Deon, and Hana. These workers can either put their time toward making hamburgers or making pizzas. Assume the amount of production each person can achieve per hour is given by the table below: Hamburgers per hour Pizzas per hour (with (with O pizzas made) 0 hamburgers made) Chip 4 4 Deon 9 6 Hana 15 5 This information on each individual should be sufcient to nd points on the production possibility curve for this economy as a whole. This involves calculating what would happen as resources are shifted from one task to another. 1. Imagine all 3 people are going to do nothing but make hamburgers. How many hamburgers could they produce each hour (combined), assuming no one spends time making pizzas? 2a. To nd another combination on the PPC, imagine they wish to give up some of this hamburger production per hour in order to also make some pizzas (moving along the PPC) and therefore decide one of the workers should instead specialize in pizza production rather than hamburgers. Which one of the 3 people would be the most efcient person to switch away from hamburger production and into pizza production? (Keep in mind the most efcient person to specialize in pizzas is not necessarily the person that can make the most, but the one that gives the best tradeoff in terms of pizzas added relative to the amount of hamburgers lost as they stop working on hamburgers.) 2b. With 2 people still making hamburgers and the person in the previous question switching to pizzas, how many hamburgers and pizzas per hour will be produced in total? 3. To nd yet another combination on the PPC, imagine another person is now switched from hamburgers to pizza production. Given that one person has already switched their time to making pizzas, who would this second most efcient pizza producer be? What is the new total combination of hamburgers and pizzas that would be produced? 4. Given your output combinations solved above and any other important production amounts, roughly graph the single PPC for this 3 person economy. Try to make your PPC's general shape t your answers correctly. 5. Now suppose a new person (and therefore an additional productive resource) shows up to work to help with the production. The new worker's name is Zippy, and in an hour he can produce at most 10 hamburgers (if not making any pizzas), or he can make at most 1 pizza (if not making any hamburgers). With these 4 workers, re-solve for the new combinations along the economy's new PPC. Show a graph to compare this new PPC relative to the previous one without ZippyStep by Step Solution
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