A farmer can produce 10,000 pears if he uses the whole of his one acre farmland.If he uses the same land for apple cultivation,a total of 5,000 apples can be produced.However,he decides to produce both and the opportunity cost of producing either fruit is constant.If his production possibility frontier (PPF)is graphed with apples on the Y-axis and pears on the X-axis,what will be the slope of this PPF?
A)-2
B)-1
C)-1.5
D)-0.5

Question

Quizplus · Accepted Answer

The slope of the PPF is the opportunity cost of producing one good in terms of the other. Here, the opportunity cost of producing pears is 0.5 apples (5,000 apples / 10,000 pears), so the slope is -0.5.

A Farmer Can Produce 10,000 Pears If He Uses the Whole