Mid Term

1. Atlantis is a small, isolated island in the South Atlantic. The inhabitants grow potatoes and pay back fresh fish. The accompanying table shows the maximum annual payoff combinations of potatoes and fish that can be stimulated. Obviously, given their limited resources and functional technology, as they use more of their resources for potato output signal, there atomic number 18 fewer resources available for catching fish. Maximum annual production options Quantity of potatoes Quantity of fish (pounds) (pounds) A 1,000 0 B 800 300 C 600 500 D 400 600 E 200 650 F 0 675 a. break down the Maximum annual output options table above and the resulting intersection Possibility Frontier Graph below and answer split b - f. Production Possibility Frontier Graph [pic] b. give notice Atlantis produce 500 pounds of fish and 800 pounds of potatoes? A) No, the reason for this is resource limitations. c. What is the opportunity exist of change magnitude the annual output of potatoes from 600 to 800 pounds?

A) The opportunity embody in increasing the output is 200 pounds of potatoes. d. What is the opportunity cost of increasing the annual output of potatoes from 200 to 400 pounds? A) The opportunity cost in increasing potatoes from 200 to 400 pounds is 50 pounds of fish e. Can you explain why the answers to parts c and d argon not the same? A) The answers to parts c and d argon not the same due to the increase in production cost for each of the operations. If you increase fish production you escape some of the potato production by, moving bodies and equipment to help with production. f. What does this hint about the slope of the production possibility frontier? A) This shows that the make headway you move to the right the steeper the slope becomes. 2. Peter Pundit, an economics reporter, states that the European Union (EU) is... If you want to get a all-embracing essay, order it on our website: Ordercustompaper.com

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