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production possibility frontier Consider an economy that produces only food clothing. Its production possibilities bounds shown below. b Tonnes of Food per Year a C

production possibility frontier

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Consider an economy that produces only food clothing. Its production possibilities bounds shown below. b Tonnes of Food per Year a C 0 1 2 3 4 5 6 7 8 Tonnes of Clothing per Year a. If the economy is at point a, how many tonnes clothing and how many tonnes of food are ber produced? At point b? At point c? b. What do we know about the use of resources whe the economy is at point a? At point b? At pointe c. If the economy is at point b, what is the opportun ity cost of producing one more tonne of food What is the opportunity cost of producing or more tonne of clothing? d. What do we know about the use of resources aids to point d? How would it be possible for the econom to produce at point d

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