The economy of Olympus produces only two consumer goods; thunderbolts and manna. Only labour is required to produce both goods, and the economy's labour force is fixed at 100 workers. The table below indicates the daily output of thunderbolts and manna produced with various quantities of labour.

Number of Workers	Daily Thunderbolt Production	Number of Workers	Daily Manna Production (kg)
0	0	0	0
20	10.0	20	150
40	20.0	40	250
60	25.0	60	325
80	27.5	80	375
100	30.0	100	400

a) What is the opportunity cost of producing thefirst10 thunderbolts? What is the opportunity cost of producing thesecond10 thunderbolts? What happens to the opportunity cost of thunderbolts as their production is continuously increased? (3 marks)

b) Suppose that actual production levels for a given period were 27.5 thunderbolts and 50 kg of manna. What does this tell you about output in Olympus? (1 mark)

c) Suppose Zeus (the central planner in this economy) were to call for an output combination of 25 thunderbolts and 325 kg of manna. Is this plan attainable? Explain. (2 marks)

Assignment 2 - due Thursday, October 07

Jump to... Jump to... Announcements Administrative Stuff Math Support for Economics Students In Class Exercises PowerPoint slides with audio commentary Assignment Zero - due ASAP Assignment 1 - due Thursday, September 23 Assignment 2 - due Thursday, October 07 Assignment 3 - due Thursd