Question: Could you please help me? pagel... Section 8 ( PPF. model ) :) A small economy has a given amount of land, labour (50,000 workers),

Could you please help me?

Could you please help me? pagel... Section 8 ( PPF. model )

pagel... Section 8 ( PPF. model ) :) A small economy has a given amount of land, labour (50,000 workers), and capital (machinery and tools). Suppose that the economy produces only two (2) goods: pizza and cola. You are given a table that shows the production - : : possibilities faced by the economy:.....'... .. Allocation Pizza produced per week . Cola produced pear week (In thousands (In thousands of bottles) 75 70 20 60 30 45 40 50 25 Questions: (a) Use the table to produce a diagram of the economy's production possibilities frontier (PPF). Label.Pizza" on the X-axis, and "Cola" on the Y-ads (b) If all resources were allocated to the production of pizza, how much pizza could be produced per week? If all resources were allocated to the production of cola, how in part (a). much cola could be produced per week? Label the specialization points or, the diagramh fromties? () What four assumptions did you make in-producing the production possibilities ":(d) What is the significance of the allocation (35 pizza, 45 cola)? Explain. Labeling this allocation on the original diagram might help. (e) Calculate the opportunity cost of. (1) Increasing the production of pizza from 10,000 units per week to 20,000 impits per week, (in) Increasing the production of pins from 40,000 units per week to 50,000 units per week, and (in) Calculate the opportunity cost of producing the first 1 2 5.9 ge bottles of cola. (iv) As this economy ing creases its production of pizza, what happens to the opportunity cost of producing pizza? Explain briefly. (f) Explain why allocations A, B, C, D, E, and F are productively effi cient

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