# Bu224 Unit 2

Satisfactory Essays
309 Words
Grammar
Plagiarism
Writing
Score
Bu224 Unit 2
Unit 2 Homework - Template

St Atanagio is a remote island in the Atlantic. The inhabitants grow corn and breed poultry. The accompanying table shows the maximum annual output combinations of corn and poultry that can be produced. Obviously, given their limited resources and available technology, as they use more of their resources for corn production, there are fewer resources available for breeding poultry.

Maximum annual output options | Quantity of Corn(pounds) | Quantity of Poultry(pounds) | 1 | 1200 | 0 | 2 | 1000 | 300 | 3 | 800 | 500 | 4 | 600 | 600 | 5 | 400 | 700 | 6 | 200 | 775 | 7 | 0 | 850 |

1. Draw a production possibility frontier with corn on the horizontal axis and poultry on the vertical axis illustrating these options, showing points 1–7.

2. Can St. Atanagio produce 650 pounds of poultry and 650 pounds of corn? Explain. Where would this point lie relative to the production possibility frontier?

No, because if they produced 650 pounds of poultry then they’d only be able to produce 550 pounds of corn. (visa versa)

3. What is the opportunity cost of increasing the annual output of corn from 800 to 1000 pounds?

If they increase the annual output or corn to 1000 then they would lose 200 pounds of poultry.

4. What is the opportunity cost of increasing the annual output of corn from 200 to 400 pounds?

If you increase the output of corn from 200 to 400 then production of poultry would be decreased by 75 to 700.

5. Can you explain why the answers to parts 3. and 4. above are not the same? What does this imply about the slope of the production possibility frontier?

The answers to part 3 and 4 are not the same because the level of production isn’t the same. Basically, the country isn’t at full production in question 4 where as in question

## You May Also Find These Documents Helpful

• Satisfactory Essays

St. Atanagio is a remote island in the Atlantic. The inhabitants grow corn and breed poultry. The accompanying table shows the maximum annual output combinations of corn and poultry that can be produced. Obviously, given their limited resources and available technology, as they use more of their resources for corn production, there are fewer resources available for breeding poultry.…

• 338 Words
• 2 Pages
Satisfactory Essays
• Better Essays

A) The answers to parts c and d are not the same due to the increase in production cost for each of the operations. If you increase fish production you lose some of the potato production by, moving bodies and equipment to help with production.…

• 1528 Words
• 7 Pages
Better Essays
• Satisfactory Essays

a) (6 points) How much output should the firm produce in order to maximize profit?…

• 851 Words
• 4 Pages
Satisfactory Essays
• Powerful Essays

producing 60 guns and 3 units of butter and at point b production is 30 guns and 7 units of…

• 1678 Words
• 4 Pages
Powerful Essays
• Good Essays

In an effort to solve the cannibalization problem of chickens and to find a more efficient…

• 1625 Words
• 8 Pages
Good Essays
• Satisfactory Essays

3.|The production possibilities frontier illustrates: A. |current production levels.|B. |a society's level of consumption.|C. |a range of alternative levels of output.|D. |decisions on how to produce.||…

• 1007 Words
• 5 Pages
Satisfactory Essays
• Good Essays

4. The owner of Chips etc. produces 2 kinds of chips: Lime(L) and Vinegar(V). He has a limited amount of the 3 ingredients used to produce these chips available for his next production run: 4800 ounces of salt, 9600 ounces of flour, and 2000 ounces of herbs. A bag of Lime chips requires 2 ounces of saly, 6 ounces of flour, and 1 ounce of herbs to produce: while a bag of Vinegar chips requires 3 ounces of salt, 8 ounces of flour, and 2 ounces of herbs. Profits for a bag of Lime chips are \$0.40, and for a bag of Vinegar Chips \$0.50. Which of the following is not a feasible production combination?…

• 894 Words
• 6 Pages
Good Essays
• Powerful Essays

What is a production possibilities frontier used for? Showing all the possible combinations of any two goods and services that can be produced using available resources and technology.…

• 635 Words
• 3 Pages
Powerful Essays
• Good Essays

Poultry is booming in this region, doubling from 2005/06 to 2010/11 even though there has only been a slight increase from 4.6% to 5.9% of all in NSW (Census 2010/11). With a massive demand for poultry and eggs overseas, exports have doubled and in NSW increased from 1.2% 2005/06 to 1.7%…

• 679 Words
• 3 Pages
Good Essays
• Powerful Essays

In my Agricultural Science School Based Assessment (Broiler Production) .This project will introduce students in the rearing of poultry within schools and with the help of Mr. Thompson from Hypo for giving our school a help in hand by contributing us with two hundred (200) chicken to our Broiler Unit since it was in fact our first time rearing chickens at Green Pond High. Chickens were the birds of focus .Chicken are from the bird family and the required suitable conditions such as: Ventilation, suitable temperature, sanitary places etc to grow. Lights were installed in the unit so to providing warmth and light for the chickens in the night in case they wanted to feed.…

• 3271 Words
• 14 Pages
Powerful Essays
• Good Essays

In the earlier chapters of this course, we were introduced to basic principles of economics and to the Production Possibility Frontier. The Production Possibility Frontier is a graphical representation of various combinations of the amounts of two commodities that could be produced using the same factors of production. When the point lies on the curve line of Production Possibility Frontier that means that a company or economy is functioning with maximum efficiency; meaning that with available factors of production the productivity output is at its highest point. Everything on the inside of the Production Possibility Frontier line means that a company, or economy is not using all available resources for production; on the other hand, everything on the outside of the Production Possibility Frontier line is un-obtainable. In order to achieve that level of production, factors of production need to change. That refers to improvement in technology, labor force, or…

• 934 Words
• 3 Pages
Good Essays
• Powerful Essays

b. See Figure 1. If all ten million workers produce two cars each, they produce a total of 20 million cars, which is the vertical intercept of the production possibilities frontier. If all ten million workers produce 30 bushels of wheat each, they produce a total of 300 million bushels, which is the horizontal intercept of the production possibilities frontier. Because the trade-off between cars and wheat is always the same, the production possibilities frontier is a straight line.…

• 1987 Words
• 8 Pages
Powerful Essays
• Better Essays

Poultry farmers will be the customers for the product as they face the issue of cannibalization amongst birds. There are three sizes of chicken farms- Small, Medium and Large. The small farms house maximum 10,000 birds and are…

• 1373 Words
• 6 Pages
Better Essays
• Satisfactory Essays

St Atanagio is a remote island in the Atlantic. The inhabitants grow corn and breed poultry. The accompanying table shows the maximum annual output combinations of corn and poultry that can be produced. Obviously, given their limited resources and available technology, as they use more of their resources for corn production, there are fewer resources available for breeding poultry.…

• 291 Words
• 2 Pages
Satisfactory Essays
• Good Essays

2. A country produces capital and consumer goods using two resources—capital and labour. The following table describes this country Production Possibilities Curve: Option Capital Goods (Units) Consumer Goods (Units) a) b) c) d) e) f) g) A 30 0 B 28 10 C 25 19 D 20 25 E 15 30 F 10 35 G 0 40…

• 1573 Words
• 7 Pages
Good Essays