blahdfasd Group Title given a production possibilities curve between wheat and corn, what does the equal profit line when the price of wheat is 0? The slope is 0, but where is the horizontal line located? (If the price of wheat is 0, no wheat is grown) 2 months ago 2 months ago

1. Koikkara Group Title

$$\color{darkgreen}{~\huge\star~Welcome~to~Open~Study~!!"~\star~}$$ @blahdfasd

2. blahdfasd Group Title

Thanks! If you have any questions about the question let me know!

3. Koikkara Group Title

$$Curve~Is~missing~\to~$$ "given a production possibilities curve"

4. Koikkara Group Title

@blahdfasd Hey, forgot curve picture to post, because it is needed to know where the points are...!!

5. blahdfasd Group Title

Sorry! It's just a regular ppc curve that's bow shaped. (in general, how would the equal profit line if the goods on the x axis has a price of 0?)

6. blahdfasd Group Title

I'm wondering what the general shape of the line would be - is it the x axis or is it higher?

7. blahdfasd Group Title

ie: ppc intersects at (0,5) and (5,0)

8. Koikkara Group Title

alright, let me give a try... $$Till~then~go~out~have~A~walk~and~come~back~!!$$

9. Koikkara Group Title

|dw:1403254418899:dw| Is this right ? because you may have much better Idea than i do.. Ref: Attached picture ~

10. blahdfasd Group Title

Yes it is right except it is curved and not a line!

11. Koikkara Group Title

@blahdfasd $$Now, you~May~have~the~answer~where~`X-Axis'~Lies~!!$$

12. blahdfasd Group Title

Except, I'm not sure what the answer is?

13. blahdfasd Group Title

I'm sure it's a horizontal line, I'm just not sure if it is the x axis or higher...

14. Koikkara Group Title

Alright, In case of line, what do u say.... its above X-axis or below ?

15. blahdfasd Group Title

Yes, since the product on the x axis has a price of 0, and the slope of the equal profit line is the price of the good on the x axis over the price of the good on the y axis, the slope must be 0.

16. blahdfasd Group Title

So is the equal prift line the x axis or above it is the question

17. Koikkara Group Title

|dw:1403255707098:dw|

18. blahdfasd Group Title

hmm, I'm a little confused which one is the equal profit line?

19. Koikkara Group Title

Tangent of a Curve ( From Figure) • tangent is drawn at only one pt on the curve • a straight line which ‘touches’ the curve only at the one point • slope of the tangent represents the slope of the curve • Note: when person (object) changes direction the tangent is horizontal so the slope is ZERO

20. Koikkara Group Title

The Line which passes through point 'a' comes as the equal profit line... does it help ?

21. blahdfasd Group Title

yes thankyou!

22. Koikkara Group Title

$$Additional~Information~!!$$ Also, Slope of a Curve • “Slope” = number which describes the change in a curve !! $$\color{darkgreen}{~''Nice~To~Meet~You~!!"}$$ @blahdfasd