Suppose an economy produces clothing and food only. The following table shows the production possibilities of the economy:

i.How does the production possibilities frontier indicate the potential of the economy?

ii.What is the economy's total opportunity cost of producing 700 pounds of food? Show the steps of your calculation.

iii Suppose the economy is currently producing at point C. What is the marginal opportunity cost of producing an additional pound of clothing? Show the steps of your calculation.

Production Clothing Food (pounds) point (pounds A 0 1,000 B 40 900 C 80 700 D 120 400 E 160 0