Hi I need the Answers to this question please thank you 1. The graph depicts the production possibilities of the nation Metalland. Metalland producestwo goods, silver and gold, and consumers prefer more of each metal. The table describesproduction of each metal, in thousands of tons, for each point:PointSilver outputGold outputA:21B:36С:2415D:129E:4221GoldAEOCВSilvera. Suppose the economy is at point A. What is the opportunity cost of 24,000 tons of silver?Explain your answer.b. Suppose the economy is at point D. What is the opportunity cost of 12,000 tons of silver?Explain your answer.c. Chair of the Council of Economic Advisors of Metalland: "Point E is a production efficientpoint. It has more of both metals than any other point." Evaluate.d. Finance Minister of Metalland: “Clearly Point D is a Pareto efficient point." Evaluate.

Answered: 1. The graph depicts the production…

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Hi I need the Answers to this question please thank you

1. The graph depicts the production possibilities of the nation Metalland. Metalland produces
two goods, silver and gold, and consumers prefer more of each metal. The table describes
production of each metal, in thousands of tons, for each point:
Point
Silver output
Gold output
A:
21
B:
36
С:
24
15
D:
12
9
E:
42
21
Gold
A
EO
C
В
Silver
a. Suppose the economy is at point A. What is the opportunity cost of 24,000 tons of silver?
Explain your answer.
b. Suppose the economy is at point D. What is the opportunity cost of 12,000 tons of silver?
Explain your answer.
c. Chair of the Council of Economic Advisors of Metalland: "Point E is a production efficient
point. It has more of both metals than any other point." Evaluate.
d. Finance Minister of Metalland: “Clearly Point D is a Pareto efficient point." Evaluate.

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Opportunity Cost: It is something that a person sacrifices when they chose one option over the other.

Production efficiency: It is a condition in which an economy can no longer produce additional amounts of a good without reducing the production level of another good. The production points on the Production Possibility Curve (PPF) are all production efficient points.

Point	Silver O/P	Gold O/P
A	0	21
C	24	15
B	36	0
D	12	9
E	42	21

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