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Computer Communications

In: Computers and Technology

Submitted By pkhourisaba
Words 4041
Pages 17
Economics 101
Summer 2012
Answers to Homework #2
Due 6/5/12

Directions: The homework will be collected in a box before the lecture. Please place your name, TA name and section number on top of the homework (legibly). Make sure you write your name as it appears on your ID so that you can receive the correct grade. Late homework will not be accepted so make plans ahead of time. Please show your work. Good luck!

Please realize that you are essentially creating “your brand” when you submit this homework. Do you want your homework to convey that you are competent, careful, professional? Or, do you want to convey the image that you are careless, sloppy, and less than professional. For the rest of your life you will be creating your brand: please think about what you are saying about yourself when you do any work for someone else!

1. George and Martha both make meatloaf and bake bread. It takes George three hours to bake six loaves of bread and two hours to make three meatloaves. It takes Martha three hours to bake eight loaves of bread and two hours to make three meatloaves. Currently George and Martha do not trade with one another. For this problem assume that George and Martha have linear production possibility frontiers and that they do not trade with anyone else.
a. Suppose George and Martha each have 60 hours this week that they can devote to bread baking and meatloaf cooking. Construct graphs depicting the production possibility frontiers for George and Martha. In your graphs make sure you label the x-axis and y-axis clearly. In your graphs, measure bread on the vertical axis and meatloaf on the horizontal axis.
b. What is George’s opportunity cost of producing one loaf of bread?
c. What is George’s opportunity cost of producing one meatloaf?
d. What is Martha’s opportunity cost of producing one loaf of bread?
e. What is Martha’s opportunity cost...

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