The following data give the production possibilities frontier of an economy that produces two types of goods, guns

and bread. Read the following table and answer questions 133-135 Table 1: Production Possibilities Production possibilities Guns Bread A 0 105 B 10 100 C 20 90 D 30 75 E 40 55 F 50 30 G 60 0 H 30 45

1. According to Table 1, the opportunity cost of increasing guns production from 20 to 30 units is equal to a. b. c. d. 10 units bread 15 units bread 25 units bread 24 units bread

The following data give the production possibilities frontier of an economy that produces two types of goods, guns and bread. Read the following table and answer questions 133-135 Table 1: Production Possibilities Production possibilities Guns Bread A 0 105 B 10 100 C 20 90 D 30 75 E 40 55 F 50 30 G 60 0 H 30 45

2. Given the data in Table 1, one moves successively from point A to points B, C, D,E and F, the opportunity cost of guns: a. b. c. d. Increases as more of guns are produced Decreases as more of guns are produced Remains constant as more of guns are produced Nothing can be said

The following data give the production possibilities frontier of an economy that produces two types of goods, guns and bread. Read the following table and answer questions 133-135 Table 1: Production Possibilities Production possibilities Guns Bread A 0 105 B 10 100 C 20 90 D 30 75 E 40 55 F 50 30 G 60 0 H 30 45

3. Point D is efficient while point H (30 guns and 45 loaves of bread) is inefficient. Why? a. b. c. d. Point D is outside the PPF while point H is on the PPF Point D is inside the PPF while point H is on the PPF Point D is on the PPF while point H is inside the PPF Nothing can be said

Use Table 2 to answer questions 138-141. Bozzos burgers is a small restaurant and a price taker. The table below provides the data of Bozzos output and costs in Rupees. Quantity 0 10 20 30 40 50 60 Total cost 100 210 300 400 540 790 1060 Fixed cost Variable cost Average variable cost Average total cost Marginal cost

1. If burgers sell for Rs. 14 each, what is Bozzos profit maximizing level of output? a. b. c. d. 10 burgers 40 burgers 50 burgers 60 burgers

Use Table 2 to answer questions 138-141. Bozzos burgers is a small restaurant and a price taker. The table below provides the data of Bozzos output and costs in Rupees. Quantity 0 10 20 30 40 50 60 Total cost 100 210 300 400 540 790 1060 Fixed cost Variable cost Average variable cost Average total cost Marginal cost

2. What is the total variable cost when 60 burgers are produced? a. b. c. d. Rs. 690 Rs. 960 Rs. 110 Rs. 440

Use Table 2 to answer questions 138-141. Bozzos burgers is a small restaurant and a price taker. The table below provides the data of Bozzos output and costs in Rupees. Quantity 0 10 20 30 40 50 60 Total cost 100 210 300 400 540 790 1060 Fixed cost Variable cost Average variable cost Average total cost Marginal cost

3. What is average fixed cost when 20 burgers are produced? a. b. c. d. Rs. 5 Rs.3.33 Rs. 10 Rs. 2.5

Use Table 2 to answer questions 138-141. Bozzos burgers is a small restaurant and a price taker. The table below provides the data of Bozzos output and costs in Rupees. Quantity 0 10 20 30 40 50 60 Total cost 100 210 300 400 540 790 1060 Fixed cost Variable cost Average variable cost Average total cost Marginal cost

4. Between 10 to 20 burgers, what is the marginal cost (per burger)? a. b. c. d. Rs. 11 Rs. 13 Rs. 14 Rs. 9

Use Table 3 to answer questions 149-150. Hours of Labour 0 1 2 3 Table 3 Total Output ----200 ---480 Marginal Product ----200 160 ----

1. What is the total output when 2 hours of labour are employed? a. b. c. d. 160 200 360 400

Use Table 3 to answer questions 149-150. Hours of Labour 0 1 2 3 Table 3 Total Output ----200 ---480 Marginal Product ----200 160 ----

2. What is the marginal product of the third hour of labour? a. b. c. d. 120 160 200 480