Question
Choiceland has 250 workers and produces only two goods,XandY . Labour is the only factor of production, but some workers are better suited to producing
Choiceland has 250 workers and produces only two goods,XandY . Labour is the only factor of production, but some workers are better suited to producing
XthanY(and vice versa). The table below shows the maximum levels of output of each good possible from various levels of labour input.
Compute the opportunity cost of producing an extra 15 units ofXif the economy is initially producing 45 units ofXand 900 units ofY . How does this compare to the opportunity cost if the economy were initially producing 60 units ofX
and 600 units ofY ?
If the economy is producing 40 units ofXand 600 units ofY,what is the opportunity cost of producing an extra 20 units ofX ?
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