Unformatted text preview: yields of corn as shown below: Possibility Corn (lbs./mo.) A 140 B 130 C 120 D 100 E 60 F 0 Graph the new production possibility curve. You may add it to your graph in part (a). d) Calculate Jane’s new opportunity costs associated with moving from point A to point B, B to C, C to D, D to E, and E to F. Are the opportunity costs you determined increasing, decreasing, or constant? Explain your answer. e) Compare your answers to (b) and (d). Have Jane’s opportunity costs gone up, down, or remained the same? Explain your answer....
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- Fall '09
- Opportunity Cost, Opportunity costs, Production-possibility frontier, 1 lbs