Consider land and labor as resources available in the Salinas Valley.Explain why you as an economist would not be surprised if thehead of the Monterey County's Affordable Housing Commission said,

"The problem we face with housing in the Salinas Valley is opportunity cost. Every time we try to build more and more houses on the Salinas Valley agricultural land the opportunity cost increases!"

(Hint: Use the production possibilities model and explain the choices society has to make when deciding to use the Salinas Valley land for either agriculture or housing. The "Y"axis might be amount of land used for agriculture. The "X" axis might be the amount of land used for housing. Use some numbers and concepts like decreasing marginal return, increasing opportunity costs, production efficiency, allocation efficiency.)