Economics 1013MicroeconomicsAssignment # 1

Due: Monday, September 30, 2013

Each question is worth 20 % of the total

1. How does the production possibility frontier illustrate opportunity cost?

2. How does the production possibilities frontier illustrate scarcity?

3. Why does the PPF for most goods bow outwards so that opportunity cost increases as the quantity of the good increases?

4. What is marginal cost? How is it measured?

5. What is marginal benefit? How is it measured?