? blackboard.ntce.edu Chapter 1 Worksheet The following table shows the hypothet

Question

? blackboard.ntce.edu Chapter 1 Worksheet The following table shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with limited capacity. Complete the table and answer the questions below. 1) Combination Number of Opportunity Cost of Number Opportunity Cost Brushes Brushes in terms of of Combs Combs in terms of Combs Brushes 10 17 N 23 a) Suppose the firm increases brush production from Alternative K to Altermative L. What is the opportunity cost resulting from this increase in brush production? Suppose the firm increases comb production from Alternative M to Altermative L What is the opportunity cost resulting from this increase in comb production? b) e Suppose the firm increases comb production from Altermative L to Alternative K What is the opportunity cost resulting from this increase in comb production?

Explanation / Answer

Number of Opportunity Number of Opportunity cost Combination Brushes Cost of brushes Combs of combs J 0 0 4 0 K 10 0.1 3 10 L 17 0.1429 2 7 M 21 0.25 1 4 N 23 0.5 0 2 Req a: To iNcrease in Production of brush from K to L 7 brushes = 1 Comb Therefore, opportunity cost of 1 brush = 1/7 comb= 0.1429 comb Req b: To nicrease the ccomb production from M to L: 1 comb =4 brushes Therefore, opportunity cost of 1 comb = 4 brushes Req c: To increas compb production from L to K. 1 comb =7 brushes Therefore, opportunity cost of 1 comb = 7 brushes

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.