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INDIVIDUAL ASSIGNMENT Question 1: Illustrate and delineate how the production possibilities verge nooky demonstrate the concept of prob competency cost. Sollution: The exertion possibilities frontier shows the combinations of output that the prudence can enhance mayhap when they use tot each(prenominal)y their resources ( human, technology, etc) . In this case, we image our combinations ar Bicycles and Motorbikes. in that respect ar 3 positions on this graph. 1. Points on the frontier: A, B, C, D If we just focus on toil of Bicycle, we use all the resources that our frugality has, we will bring on 600 products and none Motorbike. Conversely, we can possibly expose maximum cc Motorbikes without any Bicycles. On the dapples B and C, we produce both Bicycles and Motorbikes so the publication of product of each compass point are divided. For example, our economy can produce 400 Bicycles and one degree Celsius forty Motorbikes at B, 440 Bicycles and 120 Motorbikes at C. We recognize the number of Bicycles increases eyepatch the number of Motorbikes mitigates. Our economys resources are limited. If we take to devise the productivity of one souvenir we must comply to decrease other. We cant improve both cardinal degrees productivity because the economys ability is limited. on that point are uncountable points on this line and they gift the same essence with A, B, C, D. 2.

Points outside the frontier similar E: At this point the promotion in both 2 item initiate over the economys ability. We cant produce like what we want. We need to reduce the output of one item or both. 3. Point inside the frontier like F: We totall y make output like this points but it shows ! our economy is not effective because we dont use all our resources or we waste our resources. We need to scan our economys activities and have suitable strategies. Question 2: Suppose the charter and supply curves for good Y are as follows: QD = 600 - 7.5P QS = -100 + 10P where P is price per kg measured in dollars and Q is quantity measured in 000kgs (a)...If you want to get a full essay, arrangement it on our website: OrderEssay.net

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