2. Introductory Economic Models

Chuggy wants to earn a high grade in his microeconomics class, but also loves going to parties and binge drinking. The first graph illustrates Chuggy's PPF. The second graph denotes his MB curve from binge drinking. What is Chuggy's marginal cost of binge drinking if he parties for three hours a week?

Chuggy wants to earn a high grade in his microeconomics class, but also loves going to parties and binge drinking. The first graph illustrates Chuggy's PPF. The second graph denotes his MB curve from binge drinking. If Chuggy achieves allocative efficiency, how many hours does he spend binge drinking per week?

Chuggy wants to earn a high grade in his microeconomics class, but also loves going to parties and binge drinking. The first graph illustrates Chuggy's PPF. The second graph denotes his MB curve from binge drinking. What is Chuggy's economics grade when he achieves allocative efficiency?

Your bakery has workers who are cookie specialists and cake specialists. After a busy weekend, your bakery is short on cookies, and you need to rebuild your cookie inventory. To do this, you decide to shift workers away from cake production and into cookie production.

As you reassign each worker, you track how many cakes you give up and how many trays of cookies you gain:

What is the marginal opportunity cost of increasing cookie production from 10 trays to 20 trays?