Question
Question I know I maybe asking too much but I have really no idea how to answer this question. An economy's production possibility boundary is
Question
I know I maybe asking too much but I have really no idea how to answer this question.
An economy's production possibility boundary is given by the mathematical expression20 =8A + B, where A is the quantity of good "a" andBis the quantity of good "b".[Hint: To help you answer this question, use the formula Y = mX + b and have good "a" quantities correspond to X-axis values and good "b" quantities correspond to Y-axis values.]
Part 1: If all the resources in the economy are allocated to producing good "a", what is the maximum level of production for this good
Part 2: What is the maximum level of production for good "b"
Part 3: What is the opportunity cost per unit of increasing the production of good "b"
Part 4: Can the combination of10 units of good A and6 units of good B beproduced in this economy(yes=1, no=2)
Part 5: Can the combination of26 units of good A and16 units of good B beproduced in this economy(yes=1, no=2)
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