Question
Suppose that the nation of Costa Rica produces Coffee and Bananas. Below are the possible combinations of Coffee and Bananas that Costa Rica can produce.
Suppose that the nation of Costa Rica produces Coffee and Bananas. Below are the possible combinations of Coffee and Bananas that Costa Rica can produce. Use the data below to follow steps a-d. Once you have created your curve, upload a picture. Make sure all elements are labeled (x axis, y axis, points).
a. Using one of the graphing tools described in the directions, plot the Production Possibilities Curve for Costa Rica.
b. Find the combination of Bananas and Coffee of 14,000 tons of Bananas and 11,000 tons of Coffee. Label this point F. What term best describes this point?
c. Find the combination of Bananas and Coffee of 20,000 tons of Bananas and 27,000 tons of Coffee. Label this point G. What term best describes this point?
d. Draw a new curve, on the same graph, reflecting what the PPC might look like if new production technology is invented to speed up production in both industries.
Combination | Bananas metric tons (X axis) | Coffee metric tons (Y axis) |
A | 20,000 | 0 |
B | 18,000 | 11,000 |
C | 14,000 | 20,000 |
D | 8,000 | 27,000 |
E | 0 | 30,000 |
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