Jaimie and Ashley are planning on spending 6 hours each this weekend on household tasks. They need to pull some weed) and clean the house. Below is their output per hour.

 

e) Draw their joint production possibility frontier, with # of weeds pulled on the vertical axis (y-axis)
and meters of the house cleaned on the horizontal axis.

f) If they choose to pull 1000 weeds and spend the rest of their efforts washing floors, will either Jaimie or Ashley specialize?

i) If yes, on which activity?

ii) Draw an indifference curve to represent this choice. Hint. For this point and the next, you need to figure out how many hours each will spend on each activity.

iii) How many meters of the house will be cleaned if they pull 1000 weeds?

g) Ashley and Jaimie have a helpful neighbour who hates weeds. This neighbour will pull 300 weeds per day. The neighbour will not help inside the house.

f) Draw a ppf for Ashley and Jaimie including the free help from the neighbour.

i) How is this neighbour’s help likely to affect the number of weeds pulled by Ashley and Jaimie (will they likely choose to have more or less than 1000 weeds pulled)?

ii) Are Ashley and Jaimie likely to change the meters of the house cleaned this weekend?

Transcribed Image Text:

Ashley Jaimie # of weeds pulled per hour 200 300 Meters of house cleaned 3 6 Ashley Jaimie # of weeds pulled per hour 200 300 Meters of house cleaned 3 6

Answer rating: 100% (QA)

Answer Opportunity cost is defined as potential loss of one good while producing other good at the same time The hourly output of Ashley and Jaimie is shown below Weeds pulled per hour Meters of house ... View the full answer