A lane with a checker only can check out 50 customers per hour. A lane with a checker and a bagger can check out 70 customers per hour. Employees are equally skilled, and all are able to operate a register (checkers) or bag groceries (baggers). Q The Cheap'n'Fresh Grocery Store has five checkout lanes and four employees. If we have lines on the x-axis, then draw these three points from above: (0, 24), (20, 0) and (8, 20) With sanjeev doing lines, there are 8 lines with siran doing web, there will be 20 pages With specialization, figure out how many lines and pages could be done. In our case, siran should make web pages and sanjeev should produce lines of code. when specialize who should do which job? Then figure out how many products are produced. Step 2, if they both do lines, then they could do a total of 20 lines. Q How do you find values for combined PPF for specialization? Given the tableĬookies produced 0 1 2 3 4 Ī step 1, if they both do web pages, then they could do a total of 24 web pages. The reason is that the curve tells you the maximum you could produce in a country, and here, the potential increases. On the graph, demonstrate either (1) a shift of the entire curve, or (2) a movement of the point along the curve or, (3) a movement of the point inside or outside the curve that is caused by the aboveĪ Consider a graph with milk on vertical side and eggs on horizontal axis, when the general productivity increases, both factors have been increased, so answer is (1). Improvements in animal nutrition raise the general productivity of cows and chickens. On following graph, illustrate the following situation : ![]() Q Consider a country which produces only milk and eggs. ![]() If the PPF is a straight line, it indicates constant marginal productivity, or constant opportunity costs between the two goods. If the PPF is concave, it indicates diminishing marginal productivity for both goods. In a competitive market, it is the ratio of the two prices (price of x/price of y). It is also the ratio of the marginal productivity of the two goods (MP of good y/MP of good x). The slope of the PPF indicates the trade-off in production between the two goods. The region outside of the PPF is a region in which production is infeasible. When the actual production is on the PPF, the production is efficient. If the actual production (the point) is inside of the PPF, the production is said to be inefficient (more can potentially be produced). The PPF separates the xy-plane into three sectors - inside the PPF, on the PPF and outside the PPF. ![]() While the curve denotes the potential production possibilities of a country, the actual production is denoted by a point on the xy-plane. It is drawn on the axis that denote the quantity of the goods of interest. The Production Possibility Frontier/Curve is a curve that demonstrates the maximum a country can produce in a certain period of time. This article is part of the EconHelp Tutoring Wiki
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