Homework #1
Questions:
1)Farmer Brown produces eggs and milk on his farm. He initially produces at point A. He would like to produce the same amount of eggs per day and increase his milk production by one gallon per day. Is it possible? Why or Why not?
2) What is the opportunity cost of moving from point A and point B?
3) Farmer Brown is considering producing an amount of eggs and milk represented by point C. Is such a combination advisable? Why or Why not?
4)How does the production possibilities curve (PPC) illustrate the fundamental problem the science of economics is concerned with?
Answers:
1) According to the diagram, I think it is not possible because if he produces more gallons of milk then he would go down to point C. Which would cause Farmer Brown to produce one more gallon of milk and less cartons of eggs per day.
2) The opportunity cost of moving from point A to point B would mean that you would have to sacrifice producing more gallons of milk to produce more cartons of eggs.
3) it is not advisable to consider that combination since the farmer would be losing profit going from producing 8 cartons of eggs per day to 6 cartons eggs per day.
4) the PPC shows the concern that not enough milk is being produced compared to the amount of eggs being produced.
This is all the information you will need to get a 100 percent grade on this homework.
1)Farmer Brown produces eggs and milk on his farm. He initially produces at point A. He would like to produce the same amount of eggs per day and increase his milk production by one gallon per day. Is it possible? Why or Why not?
2) What is the opportunity cost of moving from point A and point B?
3) Farmer Brown is considering producing an amount of eggs and milk represented by point C. Is such a combination advisable? Why or Why not?
4)How does the production possibilities curve (PPC) illustrate the fundamental problem the science of economics is concerned with?
Answers:
1) According to the diagram, I think it is not possible because if he produces more gallons of milk then he would go down to point C. Which would cause Farmer Brown to produce one more gallon of milk and less cartons of eggs per day.
2) The opportunity cost of moving from point A to point B would mean that you would have to sacrifice producing more gallons of milk to produce more cartons of eggs.
3) it is not advisable to consider that combination since the farmer would be losing profit going from producing 8 cartons of eggs per day to 6 cartons eggs per day.
4) the PPC shows the concern that not enough milk is being produced compared to the amount of eggs being produced.
This is all the information you will need to get a 100 percent grade on this homework.