Homework: Grocery Stores Safeway, Kingsoopers
Length: 3 to 4 pages.
For this homework, visit two grocery stores. You are to construct a production possibilities frontier from each store based on the available milk and eggs (you choose which milk product and which particular egg product you use). Use the total quantity of milk as the intersection for the vertical axis and the total quantity of eggs as the intersection for the horizontal axis. Connect those points to form your production possibilities frontier. Do this for each store. In a paper,
i. Determine the opportunity costs of milk in terms of eggs from your production possibilities graph.
ii. Describe your production possibilities frontier.
iii. Identify on the curve and then explain in your paper the unattainable, efficient, and inefficient areas of production.
iv. Discuss the concept of increasing opportunity costs and identify whether the opportunity costs from your graph exhibit increasing opportunity costs.
v. Illustrate, based on the opportunity costs for each store, how specialization and trade can lead to a mutually beneficial outcome.
Format your homework according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.