Homework Production Possibilities Frontier (Ch 02) O 25 20 FOOD (Thousands of pounds) 160 240 320 400 560 STEEL (Millions of tons) Suppose the economy initially produces 15,000 pounds of food and 400 million tons of steel, which is represented by point A. The opportunity cost of producing an additional 5,000 pounds of food (that is, moving production to point B) is 96 million V tons of steel. Suppose, Instead, that the economy currently produces 336 million tons of steel and 20,000 pounds of food, which Is represented by point B. Now the opportunity cost of producing an additional 5,000 pounds of food (that is, moving to point C) is 120 million _ tons of steel. Comparing your answers in the two previous paragraphs, you can see that the opportunity cost of 5,000 additional pounds of food at point B Is the opportunity cost of 5,000 additional pounds of food at point A. This reflects the