1. Shivam can solve 5 questions of statistics in an hour. He can also solve 10
questions of economics in an hour. He studies 8 hours daily.
a) Draw Shivam's production possibility frontier for solving
questions of Statistics and of Economics,
b) What is Shivam's opportunity cost of solving 100 questions of
Statistics?
Answers
Answered by
1
Explanation:
a.
shivam study 8 hour per day
statistics = 5 question / hour
= 40 question per day
Economic = 10 question /hour
= 80 question per day
b.
Shivam solve 100 question of stats
he can solve 5 question per hour
40 question per 8 hours ......... (1)
40 question per 8 hours ......... (2)
20 question per 4 hours ......... (3)
We compute 1) , 2), 3)
8+8+4 = 20 hours
It took 20 hours to solve a stats questions... (4)
what if he choose to solve 100 question of economic
he can solve 10 question of eco per hour
80 question per 8 hour...... (5)
20 question per 2 hour...... (6)
compute 5), 6)
8+2= 10 hour
opportunity cost
= solving stats 100 question -
solving eco 100 question
= 20 hours - 10 hours
= 10 hours
opportunity cost is 10 hour
Similar questions