A production possibilities table for bananas and apples is shown below:
Bananas: 0 20 40 60 80
Apples: 100 75 50 25 0
a. Show these data graphically.
b. Does the economy above demonstrate the law of increasing opportunity cost?
c. Based on this information, what is the opportunity cost of a pound of apples?
d. What is the opportunity cost of a pound of bananas?
A production possibilities table for bananas and apples is shown below:
Bananas: 0 20 40 60 80
Apples: 100 75 50 25 0
a. Show these data graphically.
b. Does the economy above demonstrate the law of increasing opportunity cost?
c. Based on this information, what is the opportunity cost of a pound of apples?
d. What is the opportunity cost of a pound of bananas?
Related textbook solutions
Related questions
.A production possibilities table for DVDs and computers is shown below.
|
|
Production alternatives |
|||||
Type of production |
A |
B |
C |
D |
E |
|
Computers |
0 |
20 |
40 |
60 |
80 |
|
DVDs |
80 |
75 |
60 |
35 |
0 |
|
Instructions: Enter your answers as absolute and whole numbers
a. What is the opportunity cost of computers when moving from point A to point B?
b. What is the opportunity cost of computers when moving from point B to point C?
C. What is the opportunity cost of computers when moving from point C to point D?
d. What is the opportunity cost of computers when moving from point D to point E?
e. As we produce more computers, opportunity costs are...........
Problem 1
Below is a production possibilities table for consumer goods (food) and capital goods (machinery). Graph the data using Excel and then answer the following questions.
|
A |
B |
C |
D |
E |
F |
|
|
FOOD |
0 |
10 |
20 |
30 |
40 |
50 |
|
MACHINES |
150 |
140 |
120 |
90 |
50 |
0 |
(a) What are the specific assumptions that underlie the production possibilities curve?
(b) What would be the cost of more food if the economy is at point C? What would be the cost of producing more machinery? How does the shape of the production possibilities curve reflect the law of increasing opportunity costs?
(c) What if this hypothetical economy were producing only 9 food and 130 machines and it was depicted by this production possibilities table and curve? What conclusions could be drawn about this economy's resource utilization?
(d)Can this economy produce outside its current production possibilities? How can technological changes affect the production possibilities curve? How can international trade permit consumption above its production possibilities curve?
