If country A uses all of its resources efficiently, it can produce a maximum of 100 units of good X.  If country A uses all of its resources efficiently, it can produce a maximum of 150 units of good Y. If country B uses all of its resources efficiently, it can produce a maximum of 75 units of good X.  If country B uses all of its resources efficiently, it can produce a maximum of 125 units of good Y.  Both countries have (linear) straight line PPFs.    What is the opportunity cost of producing 50 units of Y in country B?

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Production Possibility Analysis

The production possibility analysis comprises the production possibility frontier (PPF), or the production possibility curve (PPC) to evaluate a society or even an economy. The production possibility curve represents the cost that the society has to incur for choosing between two different commodities. It is assumed that an economy that operates at the highest production possibility curve is known to have a better standard of living which the society can achieve for producing the optimum level of output which it can produce given a specified number of factors of production or inputs or resources.