Opportunity Costs

Question 1

1. The Brief/Scope:        

Alice’s production possibility frontier (PPF) for sprinting and working on her business is initially described in the following table:

(1.1) Draw Alice’s PPF and explain what this curve represents.     (15)

(1.2) Determine the opportunity costs associated with moving from point A to point B, B to C, C to D, D to E, and E to F, and explain if these are increasing, decreasing, or constant.     (10)

(2.1) Draw the new PPF if Alice has an additional 2 hours to dedicate to her sprinting.       (10)

(2.2) Calculate Alice’s new opportunity costs associated with moving from point A to point B, B to C, C to D, D to E, and E to F. Are the opportunity costs you determined increasing, decreasing, or constant? Explain your answer.     (10)
(3.1) Compare and analyse your answers to (1.2) and (2.2). Explain the change in opportunity costs in the 2 scenarios.     (5)

Question 2

Compare & contrast the definitions and meanings of decision support systems (DSS), business intelligence (BI), and business analytics (BA). Explain why it is so difficult to have one definition of each. Finally, draw (use any software or scan something hand-drawn) a conceptual model of how the ideas fit together in your mind.