please answer A,B,and C 3. Suppose that three workers, Larry, Moe, and Curly, al
ID: 2439722 • Letter: P
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please answer A,B,and C 3. Suppose that three workers, Larry, Moe, and Curly, all work at the same company, which washes cars and mows lawns. Each of them works a ten hour day, but they have different productive abilities: . Larry can wash one car or mow one lawn per hour. . Moe can wash one car or mow two lawns per hour. Curly can wash two cars or mow one lawn per hour. (a) Create a PPF for the company (b) Indicate where to find each of the following points on your PPF: i. Everyone spends all their time mowing lawns. ii. Everyone spends all their time washing cars. ii. All three spend half their time on each activity. iv. Moe spends all his time mowing lawns, Curly spends all his time washing cars, and Larry splits his time between the two. (c) Which, if any, of those points could be considered efficient?Explanation / Answer
A. A PPF is downward sloping curve showing an inverse relation between car washing and lawn mowing. If you increase car washing you have to decrease lawn mowing and vice verse. This is because of the limited time available which has to allocated to both activities.
B. I. If everyone mows the lawn, car washing is zero and this is shown by point A.
ii. If everyone washes the car, lawn mowing is zero and this is shown by point B.
iii. If all split their time for both activities, the economy will at point C which is efficient as their total time is utilized.
iv. The economy will again be on point C as they will wash 2.5 cars and mows 2.5 lawns.
C. Point C is efficient as this is on PPF showing utilization of complete time.
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