slide1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
An unattainable combination PowerPoint Presentation
Download Presentation
An unattainable combination

Loading in 2 Seconds...

play fullscreen
1 / 14

An unattainable combination - PowerPoint PPT Presentation


  • 866 Views
  • Uploaded on

An unattainable combination An inefficient combination (It is possible to get more of one good without giving up some of the other.) This is caused by unemployment of resources or underemployment of resources. Productive Efficiency (Production is on the PPF.)

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'An unattainable combination' - bernad


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide3

An inefficient combination (It is possible to get more of one good without giving up some of the other.)

This is caused by unemployment of resources or underemployment of resources.

slide4

Productive Efficiency (Production is on the PPF.)

On the PPF it is not possible to produce more of one good without giving up some of the other

slide9

The slope of the PPF tells us the terms of the tradeoff. We approximate the slope by looking at the two nearest points to 15,000 cars.

slide10

Slope = -50/6 = -8.33

-50

6

The MC at 15,000 cars is approximately

8.33 bushels/car

slide13

At 20,000 cars the marginal benefit is just equal to the marginal cost. This is the optimal level of car production

slide14

Allocative Efficiency (The point on the PPF that society finds most desirable (20,100))