Answered Same DaySep 23, 2021

Answer To: In file

Komalavalli answered on Sep 23 2021
133 Votes
Q1
a)
b)
The opportunity cost of producing first 15 Gizmos = 150/15 = 10
The opportunity cost o
f producing first 15 Gizmos is 30.Opportunity cost of producing Gizmos was constant till 45 units of Gizmos production and then it decreases.
c)
This indicates we can improve the production by allocating more resources of labor towards Gizmos and widget production.
d)
Opportunity cost of moving from the production combination of 15 Gizmos and 150 widgets to 15 Gizmos and 450 widgets = 50/30 = 1.7
e)
This combination is attainable but it results in inefficient allocation of resources.
f)
Production possibility curve will shift outward.planners output combination can be met but it will be an...
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