Macro Eco
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Title: Macro Eco

Essay Details:

Subject: Business
Author: Betty S
Date: February 28, 2013
Level: University
Grade: A
Length: 6 / 1742

Essay text:

Opportunity cost here measures how much an additional unit of one good costs in units forgone of the other good. The curve illustrates that increasing production of one good reduces maximum production of the other good as resources are transferred away from the other good. Given: ? Econoland produces two goods o Shirts o Haircuts. ? 1000 hours of labor is the constraint ? Haircut requires 0.5 hours of labour ? Shirt requires 5 hours of labour HS = Line indicating the PPF (which in this case is a straight line) With the given constraint of 1000 hours of labour we get the cases where: o Pt H indicates the situation when all labour units are being employed to produce 2000 haircuts ( As haircut requires 0...

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