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31. Atlantis is a small, isolated island in the South Atlantic. The inhabitants grow potatoes and catch sh. The accompanying table shows the maximum annual
31. Atlantis is a small, isolated island in the South Atlantic. The inhabitants grow potatoes and catch sh. The accompanying table shows the maximum annual output combinations of potatoes and sh that can be produced. Obviously, given their limited resources and available technology, as they use more of their resources for potato production, there are fewer resources available for catching sh. of potatoes k Iuanti of sh k) 1000 0 800 300 600 500 400 600 200 650 0 675 (d) (B) Draw a production possibility frontier with potatoes on the horizontal axis and sh on the vertical axis illustrating these options, showing points A F. Can Atlantis produce 500 kg of sh and 800 kg of potatoes? Explain. Where would this point lie relative to the production possibility frontier? What is the opportunity cost of increasing the annual output of potatoes from 600 to 800 kg? What is the opportunity cost of increasing the annual output of potatoes from 200 to 4-00 kg? Can you explain why the answers to parts (c) and (d) are not the same? What does this simply imply about the slope of the production possibility frontier
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