It's late 19th century... Tim Jones (J), a farmer in Illinois, has 8 acres of land...

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It's late 19th century... Tim Jones (J), a farmer in Illinois, has 8 acres of land to grow crops on. He can divide them between growing watermelons (W) and corn (C). Each acre yields either 300 pounds of watermelons or 100 pounds of corn each year. Jones consumes everything he produces, and his utility function is: UJ (W. C) = W0.25 0.75 a. What is Jones's production possibility frontier (PPF¹)? b. What is the general equilibrium efficient bundle (output efficiency) condition as it applies to Jones? c. Find the optimal bundle (W. C) that maximize Jones's utility given his PPF. d. Draw a graph of Jones's PPF, mark the efficient bundle and the relevant indifference curve. (Please make sure to put watermelons on the horizontal axis and corn on the vertical axis.) It's late 19th century... Tim Jones (J), a farmer in Illinois, has 8 acres of land to grow crops on. He can divide them between growing watermelons (W) and corn (C). Each acre yields either 300 pounds of watermelons or 100 pounds of corn each year. Jones consumes everything he produces, and his utility function is: UJ (W. C) = W0.25 0.75 a. What is Jones's production possibility frontier (PPF¹)? b. What is the general equilibrium efficient bundle (output efficiency) condition as it applies to Jones? c. Find the optimal bundle (W. C) that maximize Jones's utility given his PPF. d. Draw a graph of Jones's PPF, mark the efficient bundle and the relevant indifference curve. (Please make sure to put watermelons on the horizontal axis and corn on the vertical axis.)

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a What is Joness production possibility frontier PPP The production possibility frontier PPF is a curve that shows the maximum possible combinations of two goods that can be produced with a given quan... View the full answer