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deep answer please A nation's residents can allocate their scarce resources either to producing consumption goods or to producing human capital - that is providing
deep answer please A nation's residents can allocate their scarce resources either to producing consumption goods or to producing human capital - that is providing themselves with training and education. The table below displays the production possibilities for this nation:
Production Combination | Units of Consumption Goods | Units of Human Capital |
A | 0 | 100 |
B | 10 | 97 |
C | 20 | 90 |
D | 30 | 75 |
E | 40 | 55 |
F | 50 | 30 |
G | 60 | 0 |
- Suppose that the nation's residents currently produce combination "A". What is the opportunity cost of increasing production of consumption goods by 10 units? By 60 units?
- Does the law of increasing additional cost hold true for this nation? Why or why not?
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