Opportunity Cost of Producing Two Products

Question

Consider the following production possibilities table and frontier for wheat and lentils. Use this information to answer the following questions.

 

Wheat

Lentils

A

0

850

B

200

800

C

450

650

D

700

350

E

950

0

 

  • If society is at point B, what is the additional opportunity cost of producing 250 more units of wheat? If society is producing at point C, what is the additional opportunity cost of producing 250 more units of wheat?
  • In this production possibilities example, evidence exists of “increasing opportunity costs. Explain what is meant by “increasing opportunity costs” and why increasing opportunity costs exist.
  • Explain why society would not choose to produce at point G and point H in the diagram shown above.

Summary

The question belongs to Economics and it is about opportunity cost. This is a hypothetical question about producing either wheat or lentils. Here opportunity cost is traced with producing additional units of wheat and explains about increasing opportunity costs.

Total Word Count 202

 

Download Full Solution

Comments

  • HWA
    Rasha

    this is a very good website

  • HWA
    maani

    I have 50 questions for the same test your page is showing only 28

  • HWA
    joeanne

    hi can you please help or guide me to answer my assignments. thanks

  • HWA
    joeanne

    hi can anyone help or guide me to my assignments. thanks

  • HWA
    Monik


  • HWA
    Cristina

    This solution is perfect ...thanks

  • HWA
    Janete

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA
    Sandeep

    Perfect bank of solution. 

  • HWA
    Oxana

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA
    Giuseppe

    works fine.