a) Breezy is a developer of online content. She has a set amount of time to assist
Question:
a) Breezy is a developer of online content. She has a set amount of time to assist her team with a few projects. Study the table below, which shows Breezy's production possibilities. Calculate the opportunity cost of going from producing 1 app to 2 apps. Show your work.
Apps | Videos |
0 | 9 |
1 | 7 |
2 | 4 |
3 | 0 |
b) Draw a correctly labeled PPC using the data from the table above.
c) Does this PPC indicate increasing, decreasing, or constant opportunity cost? Explain.
d) Think of two goods that might have a constant opportunity cost of production. Draw and label a PPC for them. You do not need to make a table or define specific data quantities on the axes. Label which good is represented on each axis.
e) On your graph from part d, label an efficient and inefficient point of production (two separate points).