ECON 2G03 Lecture Notes - Lecture 5: Weighted Arithmetic Mean, Myelin Protein Zero, Isoquant

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whitecrab690

18 Sep 2016

School

McMaster University

Department

Economics

Course

ECON 2G03

Professor

Anastasios Papanastasiou

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Document Summary

Recall : y= ftx . ) y y* At point x ,* the most we can produce. Note that is y you can also produce at any point below y* too however it is not efficient . x. Example : suppose at and y=xm , then we can produce a maximum of. If we wanted , we could produce i unit with 4 units of input . If we tried to produce 3 units of output , we would run out of input . Iso quants generally show the many different ways to produce a given amount of output. We can produce y= 4 with ( x , This is satisfied for several x and xz values . Now we can sketch the isoquant on a 2 - dimensional axis : ) produces of output ? a given xa is ( , pg t units. Every point on the isoquant line produces at most 4 units of output.

Related Questions

Consider a Ricardian world where if all workers are employed, Country A can produce 50 units of good X, but Country B can produce 100 units of good X. On the other hand, if all workers are employed, Country A can produce 100 units of good Y and Country B can produce 50 units of good Y. We can say that:

Show work and explain why:

a. Country B has an absolute advantage in the production of good Y.

b. Country B has a comparative advantage in the production of good Y.

c. If the international terms of trade is P (price of X in terms of Y) = 2.5, it may be acceptable to country B, but it will not be acceptable to country A.

d. If (price of X in terms of Y) = 1/3 it will be acceptable to country B, but it will not be acceptable to country A.

e. all of the above are true.

cerisebadger378

1. You are told that the economy is producing efficiently and has chosen to produce and consume 5 units of X and 30 units of Y. At this point on the production possibilities frontier, you can use calculus to obtain the opportunity cost of Y as: A) B) 0.25 C) 0.4 D) 0.5 E) 1.0 F) 1.25 G) 2.0 H) 2.25 I) 4.0 J) none of the above

2. You are told that the economy is producing efficiently and has chosen to produce and consume 1 unit of X and 39.6 units of Y. At this point on the production possibilities frontier, you can use calculus to obtain the opportunity cost of Y as: A)0 B) 0.25 C) 0.4 D) 0.8 E) 1.0 F) 1.25 G) 2.0 H) 2.25 I) 4.0 J) none of the above

ECON 2G03 Lecture Notes - Lecture 5: Weighted Arithmetic Mean, Myelin Protein Zero, Isoquant

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