# answers for the questions

### Question Description:

answers for the questions 1 answer below » Betty can make either “20 bottles of wine and 0 boxes of chocolates” or “0 bottles of wine and 160 boxes of chocolates” or a combination of wine and chocolates. For parts (a) through (c) of this question assume that Betty’s Production Possibility Frontier (PPF) reflects the property of constant opportunity costs.

[10 points] Draw Betty’s PPF.

[10 points] Find Betty’s opportunity cost of a bottle of wine in terms of box(es) of chocolates.

c. [10 points] Suppose Betty takes a course called WINE 103. Document Preview: View complete question » Betty can make either “20 bottles of wine and 0 boxes of chocolates” or “0 bottles of wine and 160 boxes of chocolates” or a combination of wine and chocolates. For parts (a) through (c) of this question assume that Betty’s Production Possibility Frontier (PPF) reflects the property of constant opportunity costs.

[10 points] Draw Betty’s PPF.

[10 points] Find Betty’s opportunity cost of a bottle of wine in terms of box(es) of chocolates.

c. [10 points] Suppose Betty takes a course called WINE 103. Document Preview: Betty can make either “20 bottles of wine and 0 boxes of chocolates” or “0 bottles of wine and 160 boxes of chocolates” or a combination of wine and chocolates. For parts (a) through (c) of this question assume that Betty’s Production Possibility Frontier (PPF) reflects the property of constant opportunity costs.

[10 points] Draw Betty’s PPF.

[10 points] Find Betty’s opportunity cost of a bottle of wine in terms of box(es) of chocolates.

c. [10 points] Suppose Betty takes a course called WINE 103. After the semester is over she realizes that she can now make either “40 bottles of wine and 0 boxes of chocolates” or “0 bottles of wine and 160 boxes of chocolates” or a combination of wine and chocolates. Find Betty’s new opportunity cost of a box of chocolate in terms of bottle(s) of wine.

[20 points] Find the equilibrium price, quantity and revenue in a market characterized by the following information: ?Qd = 500 – 3P [demand curve] Qs = 2P [supply curve] Attachments: Betty-can-mak….docx View less » Feb 02 2014 10:28 PM