econ 105_tut question_chapter 1_sfu_answer0

Whatistheopportunitycostofproducingonemoretonneofcloth

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Unformatted text preview: re tonne of food? What is the opportunity cost of producing one more tonne of clothing? At point B, the opportunity cost of producing one more tonne of food (and increase from 7 to 8) is the 2.5 tonnes of clothing that must be given up. The opportunity cost of producing one more tonne of clothing (from 2.5 to 3.5) appears, from the graph, to be approximately 0.75 tonnes of food. d. What do we know about the use of resources at point D? How would it be possible for the economy to produce at point D? Point D is unattainable given the economy’s c...
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