What is a new way of doing things that initially does not meet the needs of existing customers? multiple choice question. digita
1 answer:
You might be interested in
Answer:
a. See the attached photo for the sketched PPF.
b. We have:
Opportunity cost of a clam = 2 mangos
Opportunity cost of a mango = 0.5 clam
Explanation:
a. Assume it is possible to collect fractional amounts of both goods and draw a sketch of your production possibility frontier for a week. (Place mangos on the x-axis and clams on the y-axis.)
Note: See the attached photo for the sketched PPF.
In the attached PPF, Point A indicates when you use all of your time to collect mangos and find 200 mangos in a week; while Point B shows when you devote all of your time to harvesting clams and can get 100 clams in a week. Since it assumed that it is possible to collect fractional amounts of both goods, Point C indicates when you use half of your time to find 100 mangos and harvest 50 clams in a week.
b. Calculate the opportunity cost of each good.
If you devote all of your time to harvesting clams or to collect mangos, we have:
100 clams = 200 mangos ................. (1)
Dividing both sided of equation (1) by 100, we have:
Opportunity cost of a clam = 2 mangos
Dividing both sided of equation (1) by 200, we have:
Opportunity cost of a mango = 1/2 clam, or 0.5 clam
