mjb08a_M21_RETURNED - generally increases This is evidenced...

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Production Possibilities of a Farmer Soybean Bushels Wheat Bushels Soybeans Wheat 50,000 - 40,000 38,000 I give up 10,000 bushels to get 38,000 bushels. 0.26 30,000 52,000 I give up 10,000 bushels to get 14,000 bushels. 0.71 20,000 60,000 I give up 10,000 bushels to get 8,000 bushels. 1.25 10,000 65,000 I give up 10,000 bushels to get 5,000 bushels. 2.00 - 67,000 I give up 10,000 bushels to get 2,000 bushels. 5.00 Cost of Wheat in Soybeans The Principle of Increasing Costs The principle of increasing costs states that as the production of a good expands, the opportunity cost of producing another unit
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Unformatted text preview: generally increases. This is evidenced by the change data shown above. In each case where we give up 10,000 bushels of soybeans we gain less and less wheat. Our costs of wheat in terms of soybeans are therefore increasing.- 10,000 20,000 30,000 40,000 50,000 60,000 70,000 - 20,000 40,000 60,000 Farm Production Possibilities Wheat Soybeans Key 9370affde322f57ea133b5ee53f561f4a Student ID 000425711 First Name Matthew Last Name Brown Email [email protected] Assignment M21 In Class Activity Assignment 1 M21 Excel Activity...
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This note was uploaded on 05/01/2010 for the course BUS 5529 taught by Professor Wood during the Spring '10 term at Abilene Christian University.

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mjb08a_M21_RETURNED - generally increases This is evidenced...

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