ECO
3. Suppose that you have two hours to play video games or read a novel for your English class. You can play 3 video games in an hour, and you can read 60 pages of a
novel in an hour.
a. Draw your PPF for two hours of time. Put pages read on the vertical axis and video games played on the horizontal axis. Numerically label the horizontal intercept
and the vertical intercept.
b. On your graph, show (i) an inefficient point, (ii) an efficient point, and (iii) an infeasible point.
c. What is the shape of the PPF? Why?
d. Compute the opportunity cost of playing one video game.
(Question #4 I NEED TO VERSION ANSWER )
4. (BONUS QUESTION) Suppose that Sweetland Bakery can produce two goods: brownies and cookies. The production of one pound of brownies requires two cups of chocolate
and one cup of flour. To produce cookies, one cup of chocolate and two cups of flour are required. Sweetland Bakery currently has an inventory of 180 cups of chocolate
and 180 cups of flour.
a. Draw the production possibilities frontier for SweetlandBakery. Put brownies (B) on the vertical axis and cookies (C) on the horizontal axis. Numerically label the
two intercepts.
b. What is the opportunity cost of the first cookie produced? What is the opportunity cost of the last cookie produced?
