- 1 The Following Graphs Depict The Production Possibilities Frontier Of Two Individuals Using This Information Complete 1 (64.63 KiB) Viewed 31 times
a. Fill out the chart below for the number of pounds John and Joe would produce if they devote all their resources towards the production of apples or cherries. Joe John Apples Pears Apples Pears Devote all resources to apple production 600 0 1200 0 Devote all resources to pear production 0 600 0 400 b. Fill out the chart below for the opportunity cost of producing one pound of apples and one pound of cherries. Opportunity Cost of producing 1 pound of apples Opportunity cost of producing 1 pound of pears John 1/3 lb of pears 3 lbs of apples Joe 1 lb of pears 1 lb of apples c. Who has the absolute advantage in the production of apples? Pears? d. Who has the comparative advantage in the production of apples? Pears?
2. Using the chart below, graph the production possibilities frontier for honey and maple syrup production in the United States and Canada. a. United States Canada Honey (in tons) Maples Syrup (in tons) Maples Syrup (in tons) Honey (in tons) SO 0 60 0 40 10 45 10 30 20 30 20 20 30 15 30 10 40 0 40 0 SO b. Who has the absolute advantage in the production of either good? c. Who has the comparative advantage in the production of either good?
3. Suppose the quantity demanded per day for a product is 90 when the price is $35. The following table shows costs for a firm with a monopoly in this market: Quantity (per day) Total Cost 30 $1,200 40 1,400 50 2,250 60 3,000 Briefly explain whether this firm has a naturally monopoly.