Chapter 3.pdix Microsoft Word-prx This Answer ls B, Bu ontent/group/ECON-201-101

Question

Chapter 3.pdix Microsoft Word-prx This Answer ls B, Bu ontent/group/ECON-201-101-1495-11 86/homework/Chapter%203%20Problems.pdf Chile's Production Possibilities Frontier Frontier Colombia's Production Possibilities nponb) 18 16 14 12 10 18 16 10 246 10 12 14 16 18 20 e 246 10 12 14 16 18 20 fee Ee poand 14 Refer to Figure 3-8. If the production possibilities frontiers shown are each for one day of production, then which of the following combinations of coffee and soybeans could Chile and Colombia together make in a given day? a. 4 pounds of coffee and 16 pounds of soybeans b. 8 pounds of coffee and 15 pounds of soybeans c 16 pounds of coffee and 10 pounds of soybeans d. 24 pounds of coffee and 4 pounds of soybeans 15. Refer to Figure 3-8. If the production possibilities frontiers shown are each for one day of production, then which of the following combinations of pounds of coffee and pounds of soybeans could Chile and Colombia together not make in a given day? a. 4 pounds of coffee and 17 pounds of soybeans b. 8 pounds of coffee and 14 pounds of soybeans c. 16 pounds of coffee and 9 pounds of soybeans d 24 pounds of coffee and 3 pounds of soybeans

Explanation / Answer

opportunity cost of producing 1 pound of soybean = 16/12 = 1.33 pounds of coffee (Chile)

opportunity cost of producing 1 pound of soybean = 12/6 = 2 pounds of coffee (Colombia)

14) a) can be produced (Chile would produce 12 pounds of soybean and Colombia would produce 4 pounds of soybean and 4 pounds of coffee)

15)

a) cannot be achieved. ( total maximum soybeans that can be produced = 12 + 6 = 18 pounds and giving up 1 pound of soybean production in Colomia would lead to production of 2 pounds of coffee at maximum. Further b) , c) and d) are achievable by changing the production quantities using the above opportunity costs)

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.