Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Figure 1-7 shows the production possibilities boundary for an economy that produces two goods-cotton and bananas. Short description: A graph plots tonnes of bananas against

Figure 1-7 shows the production possibilities boundary for an economy that produces two goods-cotton and bananas. Short description: A graph plots tonnes of bananas against tonnes of cotton. Long description: The horizontal axis representing tonnes of bananas (x) ranges from 0 to 400, in increments of 100. The vertical axis representing tonnes of cotton (y) ranges from 0 to 1500, in increments of 500. The graph shows a curve that passes through the following points: A (0, 1500), B (100, 1440), C (200, 1280), D (300, 920), E (360, 500), and F (400, 0). FIGURE 1-7 Refer to Figure 1-7. A production possibilities boundary is shown for an economy that produces two goods-cotton and bananas, both measured in tonnes produced per year. Suppose the economy is currently producing at point A. What is the opportunity cost to this economy of increasing the production of bananas by 100 tonnes? a. There is no opportunity cost. b. 100 tonnes of cotton c. 1440 tonnes of bananas d. 1500 tonnes of bananas e. 60 tonnes of cotton

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Rethinking Macroeconomics

Authors: John F McDonald

2nd Edition

1000434699, 9781000434699

More Books

Students also viewed these Economics questions

Question

43. What situations are addressed by SSTS No. 8?

Answered: 1 week ago