What is the opportunity cost of purses in terms of shoes as you increase the production of purses from 60 to 90?.
desi Show more Consider the following production possibilities schedule for a small country that only produces designer purses and shoes. Designer Purses Designer Shoes 100 0 90 30 60 60 40 70 0 80 A) Plot the countrys PPF on a graph. B) What is the opportunity cost of purses in terms of shoes as you increase the production of purses from 60 to 90? Calculate and interpret. C) What is the opportunity cost of shoes in terms of purses as you increase the production of shoes from 0 to 30? Calculate and interpret. D) What is the opportunity cost of shoes in terms of purses as you increase the production of purses from 40 to 60? Calculate and interpret. E) Now suppose that the resource used in the production of each item is labor. Where on the PPF would the country be producing if they were experiencing unemployment? Graph and explain why the country is producing at that point. What impact does unemployment have on this country? Show less
