Suppose an economy can produce two goods, A and B. It is now operating at point E on production

possibilities curve RT. An improvement in the technology available to produce good A shifts the curve to

ST, and the economy selects point E. How does this change affect the opportunity cost of producing an

additional unit of good B?

Two countries, Sportsland and Foodland, have similar total quantities of labor, capital, and natural

resources. Both can produce two goods, figs and footballs. Sportsland's resources are particularly well

suited to the production of footballs but are not very productive in producing figs. Foodland's resources

are very productive when used for figs but are not capable of producing many footballs. In which

country is the cost of additional footballs generally greater? Explain.