Unit 2 In-Class Exercise.docx - Unit 2Production...

This preview shows page 1 out of 1 page.

Unit 2—Production Possibilities and Comparative AdvantageA farmer has 10 acres of land and has to choose between planting coffee trees and tea bushes. The table shows the production (in thousands of pounds) of coffee and tea as a function of the number of acres planted with coffee. In the space below, graph theproduction possibility frontier between coffee and tea.0.01.02.03.04.05.06.07.08.09.010.0024681012CoffeeTeaBased on the table and your graph, which of the following combination(s) of coffee and tea output is (are) attainable?a.(4.9, 3)c. (4.4, 3.5)e. All of the combinationsb.(2.8, 8)d. Combinations a. and c.f. None of the combinations
What is the opportunity cost in terms of tea of increasing coffee production from 4,000 to 4,900 pounds?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture