Question 11

Given the following production possibility curve.

A B C D E

Peanut Butter 30 27 22 15 0

Jelly 0 8 11 14 15

a) What is the total cost of producing 27 units of peanut butter?

b) What is the total cost of producing 8 units of jelly?

c) What is the opportunity cost from point B to point D?

d) What is the per unit cost of going from point B to point A?