Question

2 Use the table below showing the amount of tasks a single worker can complete in a single work day. The units are in acres. (6 points) Mowing Trimming 10 6 2 12 16 20

Answer 1

Solution(s):

PPF or Production Possiblity frontier shows the most effecient combination of the two products output .Opportunity cost is the amount of product foregone on the y axis for the one additional unit of a product on x axis .It increases as we move down and along the PPF curve .In this example opportunity cost is constant for each output combination .

9 6 32- uonht28 1 2 on e oone Mowed 2 2 0 1G I 2 12, 4) p) C20 2 6 o 6 18 2 22 Buont frves Trimmed

Opportunity cost per acre of mowing =1/2

Opportunity cost per acre of Trimming=2.