Table 1 shows Robinson Crusoes production possibilities. 1. What is his opportunity cost of a pound of

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Table 1 shows Robinson Crusoe’s production possibilities.

TABLE 1 Fish Possibility (pounds) A B C D EFCHI G Berries (pounds) and 36 35 33 0 4.0 and 7.5 and 10.5 and 30


1. What is his opportunity cost of a pound of berries when Crusoe increases the quantity of berries from 21 pounds to 26 pounds and production is efficient? Does this opportunity cost increase as he produces more berries?

2. If Crusoe is producing 10 pounds of fish and 21 pounds of berries, what is his opportunity cost of an extra pound of berries? And what is his opportunity cost of an extra pound of fish? Explain your answers.

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Foundations Of Economics

ISBN: 9780134486819

8th Edition

Authors: Robin Bade, Michael Parkin

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