Exhibit 17-1
-Exhibit 17-1 shows the production possibilities frontiers for the countries of Lambda and Beta for fish and coconuts.What is the opportunity cost of a coconut in Beta?

Question

Exhibit 17-1 
-Exhibit 17-1 shows the production possibilities frontiers for the countries of Lambda and Beta for fish and coconuts.What is the opportunity cost of a coconut in Beta?

Quizplus · Accepted Answer

To calculate the opportunity cost of a coconut in Beta, we need to look at the slope of its production possibilities frontier. The slope measures the trade-off between producing fish and producing coconuts. For every additional coconut produced, Beta must give up some amount of fish. Looking at the graph, we can see that the slope of Beta's production possibilities frontier is -2/1, which means that for every coconut produced, Beta must give up 2 fish. Therefore, the opportunity cost of a coconut in Beta is 2 fish.

Exhibit 17-1 -Exhibit 17-1 Shows the Production Possibilities Frontiers for the Countries