Business, 15.02.2021 20:30 sierravick123owr441
The following is a set of hypothetical production possibilities for a nation.
Combination Automobiles (thousands) Beef (thousands of tons)
A 0 10
B 2 9
C 4 7
D 6 4
E 8 0
a. Plot the production possibilities data. What is the opportunity cost of the first 2,000 automobiles produced? Between which points is the opportunity cost per automobile highest? Between which points is the opportunity cost per thousand tons of beef highest?
b. Does this production possibilities curve reflect the law of increasing opportunity costs? Explain.
c. What assumptions could be changed to shift the production possibilities curve?
Answers: 2
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The following is a set of hypothetical production possibilities for a nation.
Combination Automobil...
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