1. Pages 26 – 28
in the text

2. Production alternatives
Commodity
type of product A B C D E
Pizzas
(hundred
thousands 1 2 3 4
Industrial
Robots
(thousands) 10 9 7

3. A 10 9 B 8 7 C 6
industrial robots 5 4 D 3 2 1 E 1 2 3 4
pizzas

4. McConnell Brue gives you these two graphs and then expects you to understand what their talking about
UGH!

5. So let’s employ
MARGINAL
ANALYSIS
AND SIMPLIFY THINGS

6. Production alternatives
Commodity
type of product A B C D E
Pizzas
(hundred
thousands 1 2 3 4
Industrial
Robots
(thousands) 10 9 7

7. Production alternatives
Commodity
type of product A B C D E
Pizzas 1 2 3 4
Industrial
Robots 10 9 7 1 1 1 1 1 2 3 4

8. Commodity A B C D E Pizzas 1 2 3 4 Industrial Robots 10 9 7
What does the first unit of pizza cost?
What do the first 4 units of robots cost?
What is the per unit cost of a robot moving from E to D?
Commodity
type of product A B C D E
Pizzas 1 2 3 4
Industrial
Robots 10 9 7

9. What if there are two countries. Who should produce what
What if there are two countries? Who should produce what? Start at the initial cost!
Candyland Gumland
Pizzas Robots Pizzas Robots

10. Pizzas Robots Pizzas Robots 0 10 0 26 1 9 3 24 2 7 6 18 3 4 9 9
What if there are two countries? Who should produce what? Start at the initial cost!
Candyland Gumland
Pizzas Robots Pizzas Robots 1 1 3 2 1 4 3 9