Question

14 Define a PPF. Provide an interpretation for the slope of a PPF. Which efficiency concept...

14 Define a PPF. Provide an interpretation for the slope of a PPF. Which efficiency concept does this relate to? Give a rationale for why a competitive equilibrium solves this concept.

Homework Answers

Answer #1

PPF refers to the production possibility Frontier. it shows the different combination of two products that can be produced with available resources.

Slope of PPF depicts the rate at which production of one good is sacrificed in order to increase output of another good.

All point on PPF are Pareto Efficient.

Perfectly competitive market operates where P = MC or this market is allocatively efficient. All the points on PPF are efficient and point below the PPF are inefficient.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following is the fundamental concept behind a production possibilities frontier (PPF)?
Which of the following is the fundamental concept behind a production possibilities frontier (PPF)?A. opportunity costB. the law of demandC. the law of supplyD. productive efficiencyE. technology
The concept of chemical bonds and valence provide a means of determining which molecules might form...
The concept of chemical bonds and valence provide a means of determining which molecules might form and, of these posibilities, which are likely to be unstable, and describe the concept of chemical bonds and valance. Why should we be concerned about with CO?
Why does money have a time value? Provide at least one real-life scenario in which you...
Why does money have a time value? Provide at least one real-life scenario in which you can apply the concept of time value of money?
Answer the following questions. Select which concept applies: delegation, prioritization, assignment (more than one may apply)....
Answer the following questions. Select which concept applies: delegation, prioritization, assignment (more than one may apply). Provide a rationale for each answer possible as to why it is or is not correct and be specific with factual information using research when needed. A. Which client assignment made by the charge nurse on a critical care unit is most appropriate for a nurse who is 3 months pregnant? The client who is receiving outpatient chemotherapy who is immunosuppressed The client who...
2. Suppose you can describe your preferences by the utility function U = 2qS0.8qM0.2. (a) Which...
2. Suppose you can describe your preferences by the utility function U = 2qS0.8qM0.2. (a) Which good, ski lift tickets or meals out, provides you with greater marginal utility when you have equal quantities of each? (b) Provide a formula for the slope of any indifference curve (the Marginal Rate of Substitution) between ski lift tickets and meals out. (c) What happens to your Marginal Rate of Substitution as the number of ski lift tickets you purchase increases (i.e., does...
Directions: Select the correct answer to the following questions and provide a rationale for your selection...
Directions: Select the correct answer to the following questions and provide a rationale for your selection in the spaces provided.   1. A nurse receives a change-of-shift report at 0700 for an assigned caseload of patients. Number the following patients in the order in which they should be seen: ______ A. A patient who has been receiving a blood transfusion since 0400. ______ B. A patient who has every 4-h PRN analgesic prescription and who last received pain med at 0430....
Which of the following is not a common element of successful strategies? Clear, consistent and long-term...
Which of the following is not a common element of successful strategies? Clear, consistent and long-term goals Profound understanding of the natural environment Objective appraisal of resources Effective implementation 2. Patagonia’s mission statement of ‘Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis’ can be used as an example of which of the following reasons why firms need strategy: Strategy as a decision support Strategy as a target Strategy as...
Please Check the wrong ones! 1. Which of the following best describes scarce resources? a. Resources...
Please Check the wrong ones! 1. Which of the following best describes scarce resources? a. Resources for which the quantity that people want exceeds the quantity that is freely available b. Resources that most people cannot afford to buy c. Resources for which the quantity demanded is the same for all economic agents d. Resources that can only be distributed efficiently by the government 2. Which of the following statements is true of models? a. It is more important for...
practice quiz 1. A legal maximum price at which a good can be sold is a...
practice quiz 1. A legal maximum price at which a good can be sold is a price a. floor b. stabilization c. support d. ceiling 2. A price floor is not binding if a. the price floor is higher than the equilibrium market price b. the price floor is lower than the equilibrium market price c. people are willing to buy less when the price floor is imposed as they did before d. the government sets it 3. Rationing by...
1.Which of the following changes would most likely occur in the Gotham housing market if the...
1.Which of the following changes would most likely occur in the Gotham housing market if the city were to add a network of bike paths? a.The supply curve would fall. b.The supply curve would rise. c.The demand curve would fall. d.The demand curve would rise. 2.Which of the following changes would most likely occur in the Gotham housing market if the city were to require developers to pay a tax on each new building? a.The supply curve would fall. b.The...