Figure 1.1 - Production Possibilities and Opportunity Costs: Linear Model versus Non-Linear Model In the linear production possibilities model,we assume each of five equally-sized parcels of land contributes the same to the production of food and timber: 6 units of timber or 3 units of food.
By contrast,in the non-linear model,we will assume that there are five different types of land in equal-sized plots and that each plot may contribute as follows to the production of
-Assuming all parcels of land are the same,there is a constant trade-off in the production of timber and food.When all land is in use,one more unit of food produced will require…

Question

Figure 1.1 - Production Possibilities and Opportunity Costs: Linear Model versus Non-Linear Model  In the linear production possibilities model,we assume each of five equally-sized parcels of land contributes the same to the production of food and timber: 6 units of timber or 3 units of food.
By contrast,in the non-linear model,we will assume that there are five different types of land in equal-sized plots and that each plot may contribute as follows to the production of 
-Assuming all parcels of land are the same,there is a constant trade-off in the production of timber and food.When all land is in use,one more unit of food produced will require…

Quizplus · Accepted Answer

In a linear model, the opportunity cost of producing one additional unit of food is always two units of timber. Therefore, Choice A is incorrect. In a non-linear model, the opportunity cost of producing one additional unit of food will vary depending on the type of land being used. However, the question specifies that all parcels of land are the same, so we must assume a constant trade-off. Based on this assumption, the correct answer is D, as producing one more unit of food will require two fewer units of timber.

Figure 11 - Production Possibilities and Opportunity Costs: Linear Model Versus