Homework Assignment #1

Homework Assignment #1 - MIME 2600 Engineering Economics...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
MIME 2600 – Engineering Economics Homework Assignment #1 Due on Friday, 1/25/08 Problem #1 – Given the following production possibilities schedule: Aircraft Carriers Scooters A 10 0 B 9 500 C 8 950 D 7 1300 E 6 1650 F 5 1950 G 4 2200 H 3 2400 I 2 2600 J 1 2750 K 0 2900 (a) Draw the production possibilities curve. (b) Determine the opportunity cost of producing 1 aircraft carrier. (c) Determine the opportunity cost of producing 1300 scooters. (d) Add point X for 5 aircraft carriers and 1000 scooters to your plot. Determine the opportunity cost of shifting from point X to point F. (e) Indicate what would happen to the production possibility curve if suddenly the supply of steel used in both products was reduced due to a large fire at the local steel mill. Problem #2 – Given the following economic data for 2 countries: GDP Real GDP Population Country A – 2000 $10,000,000 $10,000,000 2000 Country B – 2000 $200,000,000 $200,000,000 10000 Country A – 2005 $12,000,000 $10,500,000 2500 Country B – 2005 $240,000,000 $193,000,000 10500 (a) Determine which country had a better year in 2005 compared to 2000 in terms of physical output. Justify your answer.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern