Resource efficiency
Intros
Lessons
- PPF and Marginal Cost
- Allocative Efficiency
- Defining Marginal Cost
- Creating the Marginal Cost Curve
- Marginal Benefit
- Benefit received from one additional unit
- Willingness to Pay
- Cannot be derived from PPF
- Finding the Allocative Efficiency
- MB = MC
- An example of Finding Allocative Efficiency
Examples
Lessons
- Finding the Marginal Cost Curve
Using the table given, find the PPF and graph the marginal cost curve of food.
Food
Drinks
6
0
4
4
2
7
0
9
- Using the following information given, graph the PPF and graph the marginal cost curve of bananas
Pops (per day)
Bananas (per day)
18
0
15
2
11
4
6
6
0
8
- Graphing the Marginal Benefit Curve
Using the following information given, graph the marginal benefit curve.
Chocolate
Willingness to Pay
0
12
1
10
2
8
3
6
4
4
- Finding the Allocative Efficiency
Find the allocative efficiency of fruits when given the following information
Candy
Fruits
0
4
2
3
5
2
8
1
12
0
Fruits
Willingness to Pay
0
12
1
10
2
8
3
6
4
4