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# PPF - Increasing Marginal Opportunity Costs and Allocative Efficiency

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Concept #1: PPF - Increasing Marginal Opportunity Costs

Concept #2: PPF - Allocative Efficiency with Marginal Analysis

Practice: Chuggy wants to earn a high grade in his microeconomics class, but also loves going to parties and binge drinking. The first graph illustrates Chuggy’s PPF. The second graph denotes his MB curve from binge drinking. What is Chuggy’s marginal cost of binge drinking if he parties for three hours a week?

Practice: Chuggy wants to earn a high grade in his microeconomics class, but also loves going to parties and binge drinking. The first graph illustrates Chuggy’s PPF. The second graph denotes his MB curve from binge drinking.  If Chuggy achieves allocative efficiency, how many hours does he spend binge drinking per week?

Practice: Chuggy wants to earn a high grade in his microeconomics class, but also loves going to parties and binge drinking. The first graph illustrates Chuggy’s PPF. The second graph denotes his MB curve from binge drinking. What is Chuggy’s economics grade when he achieves allocative efficiency?