Need help with this Comparing your answers in the previous questions suggests that the opportunity cost of producing 10 million additional gallons of drinking water at point B is ________(choose between these: less than, greater than or equal to) . andthe opportunity cost of producing 10 million additional gallons of drinking water at point A. This reflects the (choose between: notion that countries can gain from trade, fact that resources are scarce or law of increasing opportunity costs) . 4. The opportunity cost of shifting production choicesThe following graph shows the production possibilities curve (PPC) of an economy that produces drinking water and coal. The blackpoints (plus symbols) represent three possible output levels in a given month. You can click on the points to see their exactcoordinates.COAL (Millions of tons)2624PPC102150DRINKING WATER (Millions of gallons)304070(?)Suppose the economy initially produces 30 million gallons of drinking water and 20 million tons of coal, which is represented by point A.The opportunity cost of producing an additional 10 million gallons of drinking water (that is, producing at point B rather than at point A)tons of coal.isSuppose, instead, that the economy currently produces 40 million gallons of drinking water and 16.8 million tons of coal, which isrepresented by point B. Now the opportunity cost of producing an additional 10 million gallons of drinking water (that is, producing atpoint C rather than at point B) is▼tons of coal.Comparing your answers in the previous questions suggests that the opportunity cost of producing 10 million additional gallons ofdrinking water at point B isthe opportunity cost of producing 10 million additional gallons of drinking water at point A.This reflects the

Opportunity cost is the profit that would have been lost had the producer chosen the alternate…

4. The opportunity cost of shifting production choices The following graph shows the production possibilities curve (PPC) of an economy that produces drinking water and coal. The black points (plus symbols) represent three possible output levels in a given month. You can click on the points to see their exact coordinates. 32 26 24 PPC 10 30 21 50 DRINKING WATER (Millions of gallons) 40 70 20 (?) Suppose the economy initially produces 30 million gallons of drinking water and 20 million tons of coal, which is represented by point A. The opportunity cost of producing an additional 10 million gallons of drinking water (that is, producing at point B rather than at point A) tons of coal. is Suppose, instead, that the economy currently produces 40 million gallons of drinking water and 16.8 million tons of coal, which is represented by point B. Now the opportunity cost of producing an additional 10 million gallons of drinking water (that is, producing at point C rather than at point B) is tons of coal. Comparing your answers in the previous questions suggests that the opportunity cost of producing 10 million additional gallons of drinking water at point B is the opportunity cost of producing 10 million additional gallons of drinking water at point A. This reflects the

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter2: Economic Tools And Economic Systems

Section: Chapter Questions

Problem 3.6P