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Suppose the following table shows the production possibilities for an economy. Production Point Good X Good Y A 8 5 B 5 10 U 5

Suppose the following table shows the production possibilities for an economy.

Production Point

Good X

Good Y

A

8

5

B

5

10

U

5

5

  1. For good Y, what is the opportunity cost of moving from point A to point B?

b. For good X, what is the opportunity cost of moving from point B to point A?

c. For good X, what is the opportunity cost of moving from point U to point 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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