Figure 2-3
Tonnes
of
Soybeans
-The production possibilities curve shown in Figure 2-3 shows that the opportunity cost of each tonne of soybeans is

Question

Figure 2-3
Tonnes
of
Soybeans 
-The production possibilities curve shown in Figure 2-3 shows that the opportunity cost of each tonne of soybeans is

Quizplus · Accepted Answer

The production possibilities curve illustrates the trade-offs in production between two goods. If the curve shows that producing one more tonne of soybeans costs one tonne of corn, it means that to increase soybean production by one tonne, the economy must reduce corn production by one tonne, indicating a 1:1 opportunity cost ratio.

Figure 2-3 Tonnes