The following graph shows the production possibilities frontier (PPF) of an economy that produces food and coal. The black points (cross symbols represent three possible output levels in a given month. (Hint: You can click on the points to see their exact coordinates.) Refer to the following graph to answer the questions that follow. FOOD (Thousands of pounds) 16 14 12 10 8 6 2 0 + 0 PPF 40 80 C + B + 120 160 200 COAL (Millions of tons) 240 280 320 ? Suppose the economy initially produces 6,000 pounds of food and 200 million tons of coal, which is represented by point A. The opportunity cost of producing an additional 2,000 pounds of food (that is, moving production to point B) is tons of coal.

The following graph shows the production possibilities frontier (PPF) of an economy that produces food and coal. The black points (cross symbols represent three possible output levels in a given month. (Hint: You can click on the points to see their exact coordinates.) Refer to the following graph to answer the questions that follow. FOOD (Thousands of pounds) 16 14 12 10 8 6 2 0 + 0 PPF 40 80 C + B + 120 160 200 COAL (Millions of tons) 240 280 320 ? Suppose the economy initially produces 6,000 pounds of food and 200 million tons of coal, which is represented by point A. The opportunity cost of producing an additional 2,000 pounds of food (that is, moving production to point B) is tons of coal.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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