Suppose Ted the track team trainer can produce two outputs, fast runners (R) and strong shot putters (S). If Ted works 40 hours per week, Ted's production possibilities frontier (PPF) per season for these two outputs is given by the equation:

S = - (l/3)R + 5
or
R= - 3S+IS

a. Complete the accompanying table by using the PPF equation to determine the number of shot putters trained per season. 

b. Graph Ted's PPF for runners and shot putters. 

c. Suppose Ted is currently producing 0 shot putters. What is Ted's opportunity cost of increasing his production of shot putters from 0 to 2?

d. Suppose Ted is currently producing 2 shot putters. What is Ted's opportunity cost of increasing production of shot putters from 2 to 4?

e. Does Ted's PPF exhibit increasing, decreasing, or constant opportunity costs? Explain. Does this seem realistic? Explain. 

f. What is Ted's opportunity cost for each shot putter produced? What is Ted's opportunity cost for each runner produced? 

g. What would you say about Ted's production if 3 shot putters and 2 runners were produced in a given season? Would he be operating on his PPF?

h. Suppose that Ted's computer crashes. His computer contains the only copy of his program for optimal nutrition and training requirements for athletes, making it harder to train the runners and shot putters as well as before. Sketch a new PPF for Ted that illustrates what this will do to his production possibilities. Briefly explain what has happened to Ted's PPF and why.

i. Starting from Ted's original PPF, suppose that the athletic department hires an assistant for Ted, allowing him to further refine his training techniques. Sketch a new PPF for Ted that illustrates what this will do to his production possibilities. Explain what has happened to Ted's PPF and why.

Transcribed Image Text:

Number of Trained Runners Per Season 15 12 9 6 3 0 Number of Trained Shot Putters Per Season