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Title: Consider two countries, Smallia and Grandia, that both have linear production possibility frontiers Post by: 90daytona on Nov 8, 2017 Consider two countries, Smallia and Grandia, that both have linear production possibility
frontiers in the production of cars and bicycles. Assume that these are the only two goods that these two countries produce. Smallia can produce either 32 bicycles or 48 cars in 4 days working at the same rate each day and Grandia can produce either 12 bicycles or 8 cars in a single day. Given this information and holding everything else constant, find the equation for the joint PPF for these two countries if they work together for 2 days. Let C be the number of cars and B be the number of bicycles. a) C = 40 + (-3/2)B for B less than or equal to 24 and C = 40 + (-2/3) B for B more than 24 b) C = 40 + (-1/3) B for B less than or equal to 24 and C = 40 + (-3/2) B for B more than 24 c) C = 40 + (-2/3) B for B less than or equal to 24 and C = 60 + (-3/2) B for B more than 24 d) C = 40 + (-2/3) B for B less than or equal to 24 and C = 40 + (-1/2) B for B more than 24 Economics 102 midterm fall2017 Title: Re: Consider two countries, Smallia and Grandia, that both have linear production possibility ... Post by: bolbol on Nov 8, 2017 c) C = 40 + (-2/3) B for B less than or equal to 24
and C = 60 + (-3/2) B for B more than 24 |