Question

QUESTION 1

1.  

   Which of the following statements about a production possibility curve for a country are true?

   Which

   of

   the following statements about a production possibility curve

   for a country

   are

   true?

   	a.	Anywhere outside the PPC is a possibility for production
   	b.	PPCs are downward sloping – there is a tradeoff between the environment and goods
   	c.	PPCs will always shift in for future generations
   	d.	All points on the PPC give the same amount of production of the two goods.

QUESTION 2

1. Suppose there are two people: Anna and Bob. Anna’s demand curve for donuts is P= 10 - Qa . Bob’s demand curve for donuts is: P= 10- 2Qb.
   
   Their joint (aggregate) marginal benefit from donuts can be described by the function: MB =  - Q.
   Their total benefit from 15 donuts is .
   Write your answers in decimals, rounding to two decimal places.  Ex DO NOT USE fractions like 1/3 or .3, but instead .33.

QUESTION 3

1. Suppose two bakeries produce donuts. Firm A’s supply curve is P = 20 + 2Qa. Firm B’s supply curve is: P = 20 + Qb. 
   Their joint supply curve is:  + Q
   Their total cost of producing 30 donuts is: 
   Write your answers in decimals. Again -- round to two decimal places.