Microeconomics

Satisfactory Essays
Unit 2 Assignment: St. Atanagio
Name: -
Course Number: -
Section Number: -
Unit Number: - 2
Date: -

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?

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

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

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?

---------------------
References:

Grading Rubric

Microeconomics: Unit 2 Assignment: PPF and Opportunity Costs | Content | Points Possible | Points Earned | Draw production possibility frontier (PPF) | 3 | | Analyze feasible/infeasible production | 2 | | Compute opportunity cost of increasing annual products | 6 | | Explain the slope of the production possibility frontier | 2 | | Analysis | | | Work demonstrates synthesis of concepts, research, and experience | 3 | | Work demonstrates the student’s ability to tie relevant information to real-life

You May Also Find These Documents Helpful

  • Powerful Essays

    Microeconomics

    • 1432 Words
    • 6 Pages

    Question 1) With examples give 5 reasons why the study of microeconomics is important. Microeconomics is a field of economic study that focuses on how an individual 's behaviour and decisions affect the supply and demand for goods and services. For the purpose of microeconomics, the actions of individuals, households and businesses are crucial, unlike the study of macroeconomics, which focuses on national and international economic trends. Despite the differences between the two fields, however…

    • 1432 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Microeconomics

    • 699 Words
    • 3 Pages

    Microeconomics (from Greek prefix mikro- meaning "small" and economics) is a branch of economics that studies the behavior of individuals and small impacting players in making decisions on the allocation of limited resources (see scarcity).[1] Typically, it applies to markets where goods or services are bought and sold. Microeconomics examines how these decisions and behaviors affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the quantity…

    • 699 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Microeconomic

    • 1531 Words
    • 7 Pages

    whether each of the following statements applies to microeconomics or macroeconomics, and why: 12 Marks Total a. The unemployment rate in Canada was 7.0 percent in January 2010 Answer: This is the macroeconomic statement because it describes the unemployment rate of the whole country. b. A Canadian software firm discharged 15 workers last month and transferred the work to India. Answer: This is the microeconomic statement because it focuses in an individual Canadian…

    • 1531 Words
    • 7 Pages
    Good Essays
  • Good Essays

    Microeconomics

    • 1285 Words
    • 6 Pages

    EC 3101: Microeconomic Analysis II A/P Indranil A/P Indranil Chakraborty All relevant details on EC3101 are in the syllabus The morning office hours on Tuesday will start from the third week of lectures t tf th thi d k fl t Important Highlights Important Highlights • Text book: Intermediate Microeconomics: A modern h approach by Hal R. Varian (8th edition) One midterm and one final exam Please do not email material, lecture or exam related questions. Post your questions precisely on IVLE Forum or ask…

    • 1285 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Microeconomics

    • 6504 Words
    • 27 Pages

    IB/AP Economics Unit 1 Introduction to Economics Introduction to Economics AP and IB Economics Unit 1 Definitions of social science and economics Definitions of microeconomics and macroeconomics Definitions of growth, development and sustainable development Positive and normative concepts Ceteris paribus Scarcity • factors of production: land, labor, capital and management/entrepreneurship • payments to factors of production: rent, wages, interest, profit Choice Utility: basic definition Opportunity…

    • 6504 Words
    • 27 Pages
    Satisfactory Essays
  • Better Essays

    Microeconomics

    • 1188 Words
    • 5 Pages

    retail bank overcomes the limitations of thirty-year-old "legacy" microeconomics systems to launch a high-tech operation that offers its customers a complete range of banking services over the telephone. Another bank is able to roll out, within three months of an acquisition, information systems that deliver the same level of service to all customers at all branches, new and old. (Richard 2002, 177) For these companies, Microeconomics has genuinely become an enabler of change that boosts competitive…

    • 1188 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Microeconomics

    • 1071 Words
    • 5 Pages

    Oil rises above $103 ahead of Iran nuclear talks Published: Thursday, 12 Apr 2012 | 5:43 AM ET SINGAPORE - Oil prices rose above $103 a barrel Thursday in Asia as traders looked to negotiations this weekend over Iran's nuclear program. Benchmark oil for May delivery was up 42 cents to $103.12 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.68 to settle at $102.70 in New York on Wednesday. Brent crude for May delivery…

    • 1071 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Microeconomics

    • 2420 Words
    • 10 Pages

    Section A a. Explain the concept of dominant strategy equilibrium. 1. http://tuvalu.santafe.edu/~jkchoi/game4.pdf 2. http://econweb.umd.edu/~borowitz/dominant_strategy_equilibrium.pdf b. Discuss the concept of Nash equilibrium. 1.http://www.economics.utoronto.ca/osborne/igt/nash.pdf 2. http://www.columbia.edu/~rs328/NashEquilibrium.pdf c. Is every dominant strategy equilibrium a Nash equilibrium? 1. http://economics.fundamentalfinance.com/game-theory/nash-equilibrium…

    • 2420 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Microeconomics

    • 17422 Words
    • 70 Pages

    Chapter -1 1. The study of microeconomics includes the study of - Output and employment growth as markets expand in reaction to a rising price level in the economy. - Business investment and government spending in the marketplace. - The number of new jobs and income created as the economy grows. - How firms, workers, consumers, and investors interact and make decisions in the marketplace. Microeconomics is the study of the behavior of individual economic units: consumers, firms, workers…

    • 17422 Words
    • 70 Pages
    Powerful Essays
  • Powerful Essays

    Microeconomics

    • 8922 Words
    • 36 Pages

    MICROECONOMICS CHAPTER 1 The Market Economy What is to be done? —Lenin When future historians look back on the close of the 20th century, one of the most sweeping changes they will note is the collapse of centrally planned economies in Eastern Europe. It is not far off to say that the Cold War between the United States and the Soviet Union was won not by the armies of the United States and its allies, but by the productive power of Western market economies. Mikhail Gorbachev, then leader of the Soviet…

    • 8922 Words
    • 36 Pages
    Powerful Essays