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AP Microeconomics 1.6 Basic Economic Concepts
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AP Microeconomics 1.6 Basic Economic Concepts Review Drill. What does this point on the production possibilities curve represent?

AP Microeconomics 1.8 Basic Economic Concepts
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AP Microeconomics 1.8 Basic Economic Concepts. What among the following may not be your opportunity cost?

AP Microeconomics 1.6 Supply and Demand
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AP Microeconomics 1.6 Supply and Demand. What will the production possibilities curve for this economy look like?

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AP Microeconomics 1.6 Supply and Demand 38 Views


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AP Microeconomics 1.6 Supply and Demand. What will the production possibilities curve for this economy look like?

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Transcript

00:00

Thank you We sneak and here's your shmoop du jour

00:05

Brought to you by quakers They're more than just a

00:07

bunch of people who sell oats They also do rice

00:10

cakes Assume quaker ville can produce either oats or cotton

00:15

And the opportunity cost of producing one unit of cotton

00:18

in terms of boats is constant for any level of

00:21

production What will the production possibilities curve for this economy

00:25

Look like all right potential answers right Both in your

00:28

boat Boat boat Well we're drawn grafts now underway to

00:31

think through this problem So get your crayons people We

00:34

start with this thing mr x and mr y and

00:38

this vertical line covers boats and this horizontal line covered

00:41

cotton need to figure out if the answer is a

00:44

curve shaped like this This this or well this So

00:50

if we think through the logic of any of these

00:52

curves the answer should come to us in well pretty

00:55

straightforward fashion A curve either up or down sideways or

00:58

backwards is going to give uneven distribution of resource is

01:02

think about an extreme curve like this if we reduce

01:05

cotton production just a tiny bid like from here to

01:09

here then glam o production volumes of road explode The

01:13

same happens with any of the other kurt Small moves

01:16

of resource is on one side of the equation Have

01:19

dramatic changes on production availability of the other constraint Good

01:24

but the problem kind of gives us the answer It

01:27

says the opportunity cost of oats is constant for any

01:31

level of production constant meaning that what should happen is

01:36

if we moved back a scotia this way reducing cotton

01:39

production As we move our dot thing in toward the

01:42

origin then the ability to produce more oats should increase

01:45

similarly or constantly Well small moves this way imply small

01:50

moves that way So the answer is b linear and 00:01:54.032 --> [endTime] that's How we roll our oats

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