illustrative problem: Assume Econoland is an agro-industrial economy that produces two goods, dried mangoes and shirts.

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Illustrative Problem Assume Econoland Is An Agro Industrial Economy That Produces Two Goods Dried Mangoes And Shirts 1 (46.97 KiB) Viewed 4260 times

illustrative problem: Assume Econoland is an agro-industrial economy that produces two goods, dried mangoes and shirts. It has 1,000 hours as its available resource. If Econoland is efficient and it takes 2 hours to process and dry 1 tonne of mangoes and 30 minutes to finish a shirt, determine the following: a) at least s possible combinations/alternatives of producing mangoes and shirts in a tabular form (note: let the 2 alternatives have one good at zero quantity, Q.) See example below: Combinations/Alternatives Number of Dried Mangoes (in tonnes) Number of shirts (in pcs) b) Plot your answers in a) in a graph. You may assign the goods in your X&Yaxes at your convenience (it does not matter which good is X or Yaxis). You may draw this manually & screen shot it or computer-generated. No need to be accurate in assigning graduations on your scale as long as it is consistent. An estimation will do. Please don't forget to label your combinations on the PPF. (e.g. A) c) What does it mean if the combination is 500 tonnes of dried mangoes and nothing for shirt production? Where is this in the PPF graph? (No need to show the graph). What does it mean when the combination is 250 tonnes of mangoes and 1,000 pcs of shirts? Where is this in the PPF curve? (e.g. on the PPF) d) What is the opportunity cost of producing 1 tonne of dried mangoes? Hint: answer is in number of shirts What is the opportunity cost of producing 1 pc of shirt? Hint: answer is in number of dried mangoes e) What is the productivity in dried mango production? Hint: answer in units per hour What is the productivity in shirt production? Hint: answer in units per hour