ECON 251 Principles of Macroeconomics Module 1 assignment Suppose a production possibilities frontier includes the following combinations Answer

ECON 251 Principles of Macroeconomics Module 1 assignment Suppose a production possibilities frontier includes the following combinations Answer

 

Suppose a production possibilities frontier includes the following combinations:

                                    Cars                            Washing Machines

0                                   1,000

100                                      600

200                                         0

  1. Graph the PPF, assuming that it has no curved segments.
  2. What is the cost of producing an additional car when 50 cars are being produced?
  3. What is the cost of producing an additional car when 150 cars are being produced?

What is the cost of producing an additional washing machine when 50 cars are being

  1. produced? When 150 cars are being produced?