Macroeconomics 11th Edition by Michael Parkin

Exercise 12

Using Resources Efficiently
In problem, what is the marginal cost of a pound of food in Yucatan when the quantity produced is 150 pounds per dayWhat is special about the marginal cost of food in Yucatan?
Problem
Use the following table to work Problem. Suppose that Yucatan's production possibilities are
a. Draw a graph of Yucatan's PPF and explain how your graph illustrates a tradeoff.
b. If Yucatan produces 150 pounds of food per month, how much sunscreen must it produce if it achieves production efficiency
c. What is Yucatan's opportunity cost of producing 1 pound of food
d. What is Yucatan's opportunity cost of producing 1 gallon of sunscreen
e. What is the relationship between your answers to parts (c) and (d)