1. Use the following data to work Problems a to g. Ethanol (barrels per day) 70...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. Use the following data to work Problems a to g. Ethanol (barrels per day) 70 64 54 40 22 0 Food crops (tons per day) and 0 and 1 and 2 and 3 and 4 and 5 Brazil produces ethanol from sugar, and the land used to grow sugar can be used to grow food crops. The table to the right sets out Brazil's production possibilities for ethanol and food crops. a. Draw a graph of Brazil's PPF and explain how your graph illustrates scarcity. b. If Brazil produces 40 barrels of ethanol a day, how much food must it produce to achieve production efficiency? c. Why does Brazil face a tradeoff on its PPF? d. If Brazil increases ethanol production from 40 barrels per day to 54 barrels per day, what is the opportunity cost of the additional ethanol? e. If Brazil increases food production from 2 tons per day to 3 tons per day, what is the opportunity cost of the additional food? f. What is the relationship between your answers to parts (d) and (e)? g. Does Brazil face an increasing opportunity cost of ethanol? What feature of Brazil's PPF illustrates increasing opportunity cost? 1. Use the following data to work Problems a to g. Ethanol (barrels per day) 70 64 54 40 22 0 Food crops (tons per day) and 0 and 1 and 2 and 3 and 4 and 5 Brazil produces ethanol from sugar, and the land used to grow sugar can be used to grow food crops. The table to the right sets out Brazil's production possibilities for ethanol and food crops. a. Draw a graph of Brazil's PPF and explain how your graph illustrates scarcity. b. If Brazil produces 40 barrels of ethanol a day, how much food must it produce to achieve production efficiency? c. Why does Brazil face a tradeoff on its PPF? d. If Brazil increases ethanol production from 40 barrels per day to 54 barrels per day, what is the opportunity cost of the additional ethanol? e. If Brazil increases food production from 2 tons per day to 3 tons per day, what is the opportunity cost of the additional food? f. What is the relationship between your answers to parts (d) and (e)? g. Does Brazil face an increasing opportunity cost of ethanol? What feature of Brazil's PPF illustrates increasing opportunity cost?
Expert Answer:
Related Book For
Posted Date:
Students also viewed these finance questions
-
Use the following data to calculate economic profit in year1. ear Sales Expenses other than interest Depreciation Earnings before interest and taxes (EBIT) Taxes on EBIT @40% Eamings before interest...
-
Use the following data to calculate GDP, GNP, NNP, national income, personal income, and personal disposable income. PERSONAL CONSUMPTION EXPENDITURES INTEREST CORPORATE PROFIT GOVERNMENT PURCHASES...
-
Use the following data to calculate Chiara's 2014 AMT base. Chiara files as a single taxpayer. Taxable income ................................ $148,000 Positive AMT adjustments ........................
-
As CEO of your company, youve been going over your financial statements and have noticed something disturbing. You perform a horizontal analysis and find that sales have been increasing at a rate of...
-
In the casino game roulette, the probability of winning with a bet on red is p = 18/38. Let Y equal the number of winning bets out of 1000 independent bets that are placed. Find P(Y > 500),...
-
Cables AB and AC can sustain a maximum tension Tmax, and the pole can support a maximum compression Pmax. Determine the maximum weight of the lamp that can be supported in the position shown. The...
-
Pereira Brick Pizza Ovens sells custom built stone and brick outdoor pizza ovens on both a credit and direct debit basis. They stock a full range of spare parts and accessories for preparing and...
-
Jaffre Enterprises distributes a single product whose selling price is $16 and whose variable expense is $11 per unit. The companys fixed expense is $16,000 per month. Required: 1. Prepare a profit...
-
We have defined a PyTorch network class DAN for you. You need to implement the forward pass for your deep averaging network. To start, first implement average that averages the words in a review and...
-
(a) A disk of mass M and radius R is held up by a massless string, as shown in Fig. The surface of the disk is frictionless. What is the tension in the string? What is the normal force per unit...
-
In order to preserve cash, Splish Inc. negotiated with one of its supplies for amount owing on account. $ 1 0 9 , 0 8 7 was paid off by signing a zero interest note on June 1 , 2 0 2 3 , due June 1 ,...
-
A company sells a piece of real estate it owns and receives $20.0 million in cash which includes a reported gain on sale of $1.5 million on its income statement. How would the statement of cash flows...
-
A person shared an article promoting the company they work for on Facebook early in the morning at work on their personal page. Their boss sees the post and commented on it. Someone leaves a negative...
-
5. A 4.7 x 10-15 kg oil drop hangs between two parallel plates. a. Calculate the oil drop's charge. b. Calculate the electron excess or deficit in the drop. 0.21 cm ++++ ++++ 220 V + +
-
Mai, age 40, is leaving the workforce. The average life expectancy for a 40-year old female is age 90. She has the opportunity to commute the value of her pension. Assuming an expected rate of return...
-
Write a 3-5 page paper explaining what palliative care is and what the role of a palliative care team is. Consider aspects of care such as: client preferences and choicesfor care, end of life and...
-
Federal Income Tax Rates For the Year 2022 From To AmountTax Rate Maximum Cummulative Tax 50,197 50,197 15.0% 50,197 100,392 50,195 100,392 155,625 55,233 155,625 221,708 66,083 221,708 infinity Tax...
-
You have accepted the engagement of auditing the financial statements of the C. Reis Company, a small manufacturing firm that has been your auditee for several years. Because you were busy writing...
-
What arguments justify people living off interest derived income?
-
What is the discount rate, and how can the Fed use it to control the nation's supply of money?
-
What factors change the rate of interest?
-
Generalize the model considered in Example 4.11 to a marginal model for the longitudinal DOS data and compare the findings with that in Example4.11 Example 4.11 For the models in Example 4.8 DOS,...
-
Suppose \(x \sim N\left(0, u^{2} ight), y \sim N\left(0, \sigma^{2} ight)\), and \(x\) is independent of \(y\). Given \(x+y=1\), find the MLE for \(x\).
-
Perform some exploratory analysis on the DTS study described above. (a) Compute the mean and standard deviation of the HamD scores for the two treatment groups at each time point. (b) Treat repeated...
Study smarter with the SolutionInn App