Possible Output Combinations

Apples

(thousands of kilos)

Pears

(thousands of kilos)

A

70

0

B

60

20

C

50

36

D

40

48

E

30

56

F

20

60

G

10

63

H

0

65

1- Refer to Table 1-1. The Fruit Farm produces only apples and pears. The table above shows the maximum possible output combinations of the two fruits using all resources and currently available technology.

b. Suppose the Fruit Farm is currently producing at point D. What is the opportunity cost of producing an additional 8,000 kilos of pears?