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The table below describes the production possibilities confronting an economy. Using that information: calculate the opportunity cost of building hospitals and answer two questions about
The table below describes the production possibilities confronting an economy. Using that information: calculate the opportunity cost of building hospitals and answer two questions about production possibilities. a. Calculate the opportunity costs of building hospitals. Potential Output Homeless Combinations Shelters Hospitals Opportunity Cost of Building One More Hospital A 20 0 17 homeless shelters 13 homeless shelters WN homeless shelters D homeless shelters p. Why can't more of both outputs be produced? The political process creates a situation where more of both is impossible. Our resources are limited and are therefore not capable of producing everything we want. O. The market mechanism creates a situation where more of both is impossible. Hospitals are more expensive than homeless shelters. . Which output combination is the most desired one? OA O. B OC OD OE It depends on the value judgments of society
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