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Suppose that Economy A's production possibilities are given in the Table 1. Use this information to answer the following questions: Table 1 Food (kg per
- Suppose that Economy A's production possibilities are given in the Table 1. Use this information to answer the following questions:
Table 1
Food (kg per month) | Clothing (Pieces per month) |
300 | 0 |
200 | 50 |
100 | 100 |
0 | 150 |
- If Economy A produces 200 kg of food per month, how much clothing must it produce if it achieves production efficiency?
- What is Economy A's opportunity cost of producing (i) 1 kg of food and (ii) 1 piece of clothing?
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