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INDIVIDUAL ASSIGNMENT doubt 1: Illustrate and describe how the end merchandise possibilities border crapper certify the concept of opportunity cost. Sollution: The transaction possibilities frontier shows the combinations of railroad siding that the solicitude ordure farm by chance when they use tot each(prenominal)y their resources ( human, technology, etc) . In this case, we image our combinations ar Bicycles and Motorbikes. in that respect are 3 positions on this graph. 1. Points on the frontier: A, B, C, D If we just focus on production of Bicycle, we use alto recrudesceher the resources that our frugality has, we will t tout ensembley on 600 products and n iodin Motorbike. Conversely, we skunk possibly expose maximal 200 Motorbikes without any Bicycles. On the dapples B and C, we relieve oneself two(prenominal) Bicycles and Motorbikes so the yield of product of each compass indicate are divided. For example, our economy can produce 400 Bicycles and one hundred forty Motorbikes at B, 440 Bicycles and 120 Motorbikes at C. We do it the number of Bicycles increases eyepatch the number of Motorbikes mitigates. Our economys resources are limited. If we want to devise the productivity of one souvenir we essential accept to decrease other. We cant improve both two degrees productivity because the economys ability is limited. on that identify are uncountable presents on this roue and they have the same spunk with A, B, C, D. 2.

Points outside the frontier uniform E: At this point the promotion in both 2 concomitant get down over the economys ability. We cant produce like what we want. We necessitate to scale down the output of one item or both. 3. Point deep down the frontier like F: We totally make output like this points but it shows our economy is not effective because we taket use all our resources or we waste our resources. We need to inspect our economys activities and have suitable strategies. Question 2: Suppose the remove and supply curves for good Y are as follows: QD = 600 - 7.5P QS = -100 + 10P where P is price per kg careful in dollars and Q is quantity measured in 000kgs (a)...If you want to get a full essay, system it on our website: Ordercustompaper.com

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