Given below is the production possibilities schedule for a small island nation in South Pacific that produces capital and consumer goods.Table 2.3

-Consider the production possibilities curve [PPC] for a country producing only cheese and wine. The first few resources transferred from cheese to wine production are:

Question

Given below is the production possibilities schedule for a small island nation in South Pacific that produces capital and consumer goods.Table 2.3
 
-Consider the production possibilities curve [PPC] for a country producing only cheese and wine. The first few resources transferred from cheese to wine production are:

Quizplus · Accepted Answer

The opportunity cost of producing one unit of wine is lowest for those resources which are least specialized in cheese production, meaning they can easily be transferred to wine production without affecting much cheese production. Therefore, it is best to transfer resources from cheese to wine production starting with those that are least specialized in cheese production.

Given Below Is the Production Possibilities Schedule for a Small