Question
A production possibilities table for two products, corn and paper, is found below. Usual assumptions regarding production possibilities are implied. Corn is measured in tons,
A production possibilities table for two products, corn and paper, is found below. Usual assumptions regarding production possibilities are implied. Corn is measured in tons, and paper is measured per unit.
Combination | Corn | Paper |
A | 0 | 6 |
B | 18 | 5 |
C | 33 | 4 |
D | 45 | 3 |
E | 54 | 2 |
F | 60 | 1 |
G | 63 | 0 |
(a) What is the maximum amount of corn the country can produce? (1 mark) (b) What is the opportunity cost of a movementfrompoint F to E? In your answer specify which item is gained and by how much and which item is sacrificed and by how much. (2 marks)
e. Suggest an unattainable combination and an inefficient combination for this economy. (2 marks)
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