Refer to the Diagram Below to Answer This Question

question 23

Essay

Refer to the diagram below to answer this question. The Edgeworth Box diagram above refers to input usage in the automobile industry and the computer chip industry.The contract curve is given by O_AO_C.All points on this curve correspond to input prices being equivalent across industries.For example,the line segment AC indicates the input price ratio at point B in the two industries.Also,line segment DF indicates the input price ratio at point E in the two industries.The diagram below presents the production possibilities frontier for automobiles and computer chips. The labeled points in the production possibilities frontier diagram correspond to the points A,B,E,and F in the Edgeworth Box diagram above.Which points in the production possibilities frontier diagram correspond to which points in the Edgeworth Box diagram? Why?

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Definitions:

Justice Approach

A way to base decisions on the basis of fairness

Ethical Decision-Making

The procedure of scrutinizing and opting for alternatives that adhere to principles of ethics.

Rights Approach

A decision-making method based on using moral principles that least infringe on the entitlements of others.

Moral Principles

Fundamental beliefs about what is right and wrong that guide an individual's behavior and decision-making.