A Little Math © Allen C Goodman, 2005
Graphing Let’s return to the Production Possibility Curve that we saw before How did we get it?
Figure 2 The Production Possibilities Frontier Copyright©2003 Southwestern/Thomson Learning Production possibilities frontier D C Quantity of Cars Produced 2, ,000 3,000 1,000 Quantity of Computers Produced ComputersCars A B E F 2,500 1,
Figure 2 The Production Possibilities Frontier Copyright©2003 Southwestern/Thomson Learning If you are at point C, what is the cost of another 100 cars? To get +100 cars, you must take -200 computers! Production possibilities frontier D C Quantity of Cars Produced 2, ,000 3,000 1,000 Quantity of Computers Produced A B E F 2,500 1, Slope = “rise”/”run”
Figure 2 The Production Possibilities Frontier Copyright©2003 Southwestern/Thomson Learning If you are at point C, what is the cost of another 100 cars? To get +100 cars, you must take -200 computers! Production possibilities frontier D C Quantity of Cars Produced 2, ,000 3,000 1,000 Quantity of Computers Produced A B E F 2,500 1, Cost/car = -2 computers/car !
Another Example w/ Excel HoursScore xx yy Slope Let’s use an excel program, slope.xlsslope.xls
Key Points We will be graphing relationships. You should get comfortable with it. Whatever aides you need (EXCEL, graphing calculators, etc.) are fine with me, if they can help you to do the work.