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Economics for Today 9th Edition by Irvin Tucker
Edition 9ISBN: 978-1305507111Economics for Today 9th Edition by Irvin Tucker
Edition 9ISBN: 978-1305507111 Exercise 9
The following is a set of hypothetical production possibilities for a nation. 
a. Plot these production possibilities data. What is the opportunity cost of the first 2,000 automobiles produced? Between which points is the opportunity cost per thousand automobiles highest? Between which points is the opportunity cost per thousand tons of beef highest?
b. Label a point F inside the curve. Why is this an inefficient point? Label a point G outside the curve. Why is this point unattainable? Why are points A through E all efficient points?
c. Does this production possibilities curve reflect the law of increasing opportunity costs? Explain.
d. What assumptions could be changed to shift the production possibilities curve?
a. Plot these production possibilities data. What is the opportunity cost of the first 2,000 automobiles produced? Between which points is the opportunity cost per thousand automobiles highest? Between which points is the opportunity cost per thousand tons of beef highest?
b. Label a point F inside the curve. Why is this an inefficient point? Label a point G outside the curve. Why is this point unattainable? Why are points A through E all efficient points?
c. Does this production possibilities curve reflect the law of increasing opportunity costs? Explain.
d. What assumptions could be changed to shift the production possibilities curve?
Explanation
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a)Below is the table for the production ...
Economics for Today 9th Edition by Irvin Tucker
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