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Suppose the following table shows the production possibilities for an economy. Production Point Good X Good Y A 5 10 B 8 5 U 5
Suppose the following table shows the production possibilities for an economy.
Production Point Good X Good Y
A 5 10
B 8 5
U 5 5
a. What is the opportunity cost of moving from point A to B?
b. What is the opportunity cost of moving from point B to A?
c. What is the opportunity cost of moving from point U to A?
d. Suppose points A and B are on the production possibility frontier. What conclusion can be drawn about production point U?
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