The following figure illustrates the production possibilities curve of a farmer who has to decide on the quantities of wheat and rice to produce for a given amount of resources.Three possible production combinations-A,B,and C-are marked on the figure.

a)Which of the three combinations of wheat and rice,marked on the graph,is both efficient and attainable? Explain your answer.
b)Calculate the opportunity cost of producing both wheat and rice.

Question

The following figure illustrates the production possibilities curve of a farmer who has to decide on the quantities of wheat and rice to produce for a given amount of resources.Three possible production combinations-A,B,and C-are marked on the figure.
  
a)Which of the three combinations of wheat and rice,marked on the graph,is both efficient and attainable? Explain your answer.
b)Calculate the opportunity cost of producing both wheat and rice.

Quizplus · Accepted Answer

The Answer of The following figure illustrates the production possibilities curve of a farmer who has to decide on the quantities of wheat and rice to produce for a given amount of resources.Three possible production combinations-A,B,and C-are marked on the figure.
  
a)Which of the three combinations of wheat and rice,marked on the graph,is both efficient and attainable? Explain your answer.
b)Calculate the opportunity cost of producing both wheat and rice.

The Following Figure Illustrates the Production Possibilities Curve of a Farmer