Consider an economy that produces only food and clothing. Its production possibilities boundary is shown at right. Production Possibilities Boundary 107 a. If the economy is at point A, how many tonnes of clothing and how many tonnes of food are being produced? At point C? 00 40 B D Point A 3 tonnes of clothing and 3 tonnes of food N Point C 6 tonnes of clothing and 3 tonnes of food Tonnes of Food Per Year b. What do we know about the use of resources when the economy is at point B? A C When the economy is at point B the use of resources is efficient 3 - c. If the economy is at point C, what is the opportunity cost of producing one more tonne of clothing? The opportunity cost of producing one more tonne of clothing is about 2 8 Tonnes of Clothing Per Year 0.4 tonne of clothing 3 tonnes of food 0.4 tonne of food