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May 11, 2024

Assignment Task

Please answer the following questions and comment on your answers when needed.

Production point Fish (pounds)   Berries (pounds)
A 0 and 50
B 1 and 45
C 2 and 35
D 3 and 20
E 4 and 0

 

The table above shows the production points for the nation of Utopia.

a) Graphically illustrate the PPF. (Elaborate on the graph)

b) Find the marginal cost of a pound of fish using the above PPF.

c) How does the marginal cost of a pound of fish change as more fish are caught?

Fish MB
1 25
2 20
3 15
4 9

 

d) Given the Marginal Benefit in the table above. Graphically illustrate the allocative efficiency point.

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