Homework Help is Here – Start Your Trial Now!
Business
Economics
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

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

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
100%

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) . 

and

the 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 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. COAL (Millions of tons) 26 24 PPC 10 21 50 DRINKING WATER (Millions of gallons) 30 40 70 (?) 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
Transcribed Image Text: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. COAL (Millions of tons) 26 24 PPC 10 21 50 DRINKING WATER (Millions of gallons) 30 40 70 (?) 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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Labor Supply
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS