Question

1. Maria can read 15 pages of economics in an hour. She can also read 40 pages of sociology in an hour. She spends 8 hours per day studying.

a. Draw Maria’s production possibilities frontier for reading economics and sociology.

b. What is Maria’s opportunity cost of reading 80 pages of sociology?

Answer 1

2.To read 1 page of Sociology, she is giving up,20pages

50pages

​=2.5 pages of EconomicsTherefore, to read 100 pages of Economics,Maria would have to give up(100∗2.5)=250pages of Economicswhich is her opportunity cost.

$\text{1.}\, \text{E}=20\ \text{pages}\\ \text{S}=50\ \text{pages}\\ \text{If Maria spends 5hours on reading Economics}\\ \text{she would read} (20*5)\text{pages}=100\text{pages}\\ \text{If she spends 5hours on Sociology,}\\ \text{she would read} (50*5)\text{pages}=250\text{pages}\\ \text{if she decides to spend 2.5hours each on them,}\\ \text{she would read};\\ (20*2.5)\text{pages}=50\text{pages of Economics}\\ (50*2.5)\text{pages}=125\text{pages of Sociology}\\$