Figure 2-2
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
-Refer to Figure 2-2.What is the opportunity cost of one pound of vegetables?

Question

Figure 2-2
  Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
-Refer to Figure 2-2.What is the opportunity cost of one pound of vegetables?

Quizplus · Accepted Answer

Looking at the production possibilities frontier, we can see that Mendonca has to give up some meat to produce more vegetables. The slope of the frontier gives us the opportunity cost of producing vegetables in terms of meat. From point A, the production of one additional pound of vegetables requires giving up $\frac{3}{4}$ pound of meat. Therefore, the opportunity cost of one pound of vegetables is $\frac{3}{4}$ pound of meat.

Answer: Point E 
 Point E is the point on the production possibilities frontier that represents the most efficient use of Mendonca's resources. At this point, the nation is producing 300 pounds of meat and 400 pounds of vegetables. Any point outside the production possibilities frontier is unattainable given Mendonca's current resources and technology. Any point inside the frontier represents an inefficient use of resources. Therefore, point E is the best choice for Mendonca.

Figure 2-2 Figure 2-2 Above Shows the Production 34\frac{3}{4}43​

Figure 2-2
Figure 2-2 Above Shows the Production $\frac{3}{4}$