Exhibit 21-1 Production possibilities curves In Exhibit 21-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. In Pada the cost of producing one more unit of wheat is equal to:

Question

Exhibit 21-1  Production possibilities curves  In Exhibit 21-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. In Pada the cost of producing one more unit of wheat is equal to:

Quizplus · Accepted Answer

The slope of Pada's production possibilities curve is -3 (3 units of corn given up to produce one unit of wheat), so the cost of producing one more unit of wheat is equal to 1/3 unit of corn.

Exhibit 21-1 Production Possibilities Curves in Exhibit 21-1, the Production