Below is a production possibilities table for consumer goods (automobiles) and capital goods (forklifts).

a. Show these data graphically. Upon what specific assumptions is this production possibilities curve based?

- b) If the economy is at point C, what is the cost of one more automobile? Of one more forklift? Explain how the production possibilities curve reflects the law of increasing opportunity costs: it shape or its length?

- c) If the economy characterized by this production possibilities table and curve were producing 3 automobiles and 20 forklifts, what could you conclude about its use of available resources?

d) Is production at a point outside the production possibilities curve currently possible? Could a future advance in technology allow production beyond the current possibilities curve? Could international trade allow a country to consume beyond its current possibilities curve?

is a production possibilities table for consumer goods (automobiles) and Production Alternatives Type of Production A B C D E Automobiles 0 2 4 6 8 Forklifts 30 27 21 12 0 e data graphically. Upon what specific assumptions is this production pos jomy is at point C, what is the cost of one more automobile? Of one more roduction possibilities curve reflects the law of increasing opportunity costs jomy characterized by this production possibilities table and curve were pro es and 20 fork lifts, what could you conclude about its use of available res ld production at a point outside the production possibilities curve indicate? economy can attain such a level of production? The assumptions are full employment, fixed supplies of resources, fixed te