Assume for Namibia that the opportunity cost of each hut is 200 bowls.Which of these pairs of points could be on Namibia's production possibilities frontier?
A) (200 huts, 30,000 bowls) and (150 huts, 35,000 bowls)
B) (200 huts, 40,000 bowls) and (150 huts, 30,000 bowls)
C) (300 huts, 50,000 bowl) and (200 huts, 60,000 bowls)
D) (300 huts, 60,000 bowls) and (200 huts, 80,000 bowls)

Question

Quizplus · Accepted Answer

The opportunity cost of each hut is 200 bowls, meaning for every additional hut produced, 200 fewer bowls can be produced. In option D, moving from 300 huts to 200 huts results in a decrease of 100 huts, which corresponds to an increase of 20,000 bowls (100 huts * 200 bowls/hut), consistent with the opportunity cost.

Assume for Namibia That the Opportunity Cost of Each Hut