Analysis of Opportunity Costs and Production Points | Microeconomics | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

Group assignment presentation 1 Exercise 1 a, -
From point A move to point B increase 2 million cars and reduce 3 thousand guided missiles. -
From point B move to point C increase 2 million cars and reduce 6 thousand guided missiles. -
From point C move to point D increase 2 million cars and reduce 9 thousand guided missiles. -
From point D move to point E increase 2 million cars and reduce 12 thousand guided missiles. 3 A -> B: 2 = 1,5 6 B -> C: 2 = 3 C -> D: 92 = 4,5 12 D -> E: 2 = 6
It means opportunity costs of production missiles is increasing.
b, If the economy is currently at point C: - 21−12
Opportunity costs of one million more cars is
6−4 = 4,5 thousands of guided missiles. - 4−2
Opportunity costs of one thousand more guided missiles is 27−21 = 0,33 millions of cars.
c, Point G is inefficient because at point G, all resourses are not fully ulitized. d, -
Point H is impossible because it’s beyond the scope of resources. -
Before the economy can attain the level of production indicated by point H, must
develop production infrastructure, human resourses level and a few other influencing factors. e, Exercise 2 a,
b, I call point at 9 tons of wheat and 4000 set of cloths is G
So, production possibility of this economy is inefficient.
c, When output is 20 tons of wheat and 10 000 set of cloths, we have point H.
We can see point H is outside the PPF line, so this economy can not produce 20
tons of wheat and 10 000 set of cloths. 5 d, A -> B: 4 = 1,25 5 B -> C: 3 = 1,6 6 C -> D: 2 = 3 D -> E: 91 = 9