# answerstohomework1spring2010 - Economics 102 Spring 2010...

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(b) Assume this farm is producing on its PPF. How many units of milk will the farm produce if it produces 3 units of corn? (c) Assume this farm is producing on its PPF. How many units of corn will the farm produce if it produces 0 units of milk? Solution. (a) (2, 10) and (4, 6) are on the PPF, so the slope of the PPF is (6-10) / (4-2) = -2, so the straight line should be Y = -2X + a , where a is unknown. Now we plug in point (4, 6), we can get 6 = -2 * 4 + a , and solving for a , we find that a = 14. So the Straight line should be Y = -2X +14. (b) If this farm produces 3 units of corn, then X = 3, so Y= -2 * 3 + 14 = 8, so the farm would produce 8 units of milk. (c) If the farm produces 0 units of milk, Y = 0, so 0 = -2X +14. X = 7. 7 units of corn will be produced.
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## This note was uploaded on 05/27/2011 for the course ECON 201 taught by Professor Caltech during the Spring '10 term at Wisc Eau Claire.

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answerstohomework1spring2010 - Economics 102 Spring 2010...

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