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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 |
- 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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