Homework Help is Here – Start Your Trial Now!
Business
Economics
A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule.   Production Possibilities Product    A    B       C      D       E     F Steel          0    1      2       3       4      5 Wheat    100   90    75    55    30      0   The opportunity cost of producing the 31st unit of wheat is approximately

A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule.   Production Possibilities Product    A    B       C      D       E     F Steel          0    1      2       3       4      5 Wheat    100   90    75    55    30      0   The opportunity cost of producing the 31st unit of wheat is approximately

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

A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule.

 

Production Possibilities
Product    A    B       C      D       E     F
Steel          0    1      2       3       4      5
Wheat    100   90    75    55    30      0
 

The opportunity cost of producing the 31st unit of wheat is approximately

  • 25 units of steel.
  •  
    0 units of steel.
  •  
    1 unit of steel.
  •  
    1/25 of a unit of steel.

 

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
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

can I have help understanding if it is decreasing or increasing or neither

**Production Possibilities Schedule Analysis** A nation can produce two products: steel and wheat. The table below illustrates the nation’s production possibilities schedule. | Product | A | B | C | D | E | F | |---------|----|----|----|----|----|----| | Steel | 0 | 1 | 2 | 3 | 4 | 5 | | Wheat | 100| 90 | 75 | 55 | 30 | 0 | The table displays various combinations of steel and wheat production. Each column from A to F represents a different production possibility, showing the maximum amount of one good that can be produced given the production of the other good. **Explanation of the Diagram:** 1. **Possibility A:** 0 units of steel and 100 units of wheat. 2. **Possibility B:** 1 unit of steel and 90 units of wheat. 3. **Possibility C:** 2 units of steel and 75 units of wheat. 4. **Possibility D:** 3 units of steel and 55 units of wheat. 5. **Possibility E:** 4 units of steel and 30 units of wheat. 6. **Possibility F:** 5 units of steel and 0 units of wheat. **Opportunity Cost Analysis:** In moving stepwise from possibility A to B to C and so on to F, the opportunity cost of a unit of steel in terms of wheat can be calculated by observing the reduction in wheat production for each additional unit of steel produced. For example: - Moving from A to B, producing 1 additional unit of steel causes wheat production to decrease by 10 units (from 100 to 90). - Moving from B to C, producing another unit of steel reduces wheat production by 15 units (from 90 to 75). This analysis helps in understanding the trade-offs and opportunity costs involved in resource allocation for the production of steel and wheat.
Transcribed Image Text:**Production Possibilities Schedule Analysis** A nation can produce two products: steel and wheat. The table below illustrates the nation’s production possibilities schedule. | Product | A | B | C | D | E | F | |---------|----|----|----|----|----|----| | Steel | 0 | 1 | 2 | 3 | 4 | 5 | | Wheat | 100| 90 | 75 | 55 | 30 | 0 | The table displays various combinations of steel and wheat production. Each column from A to F represents a different production possibility, showing the maximum amount of one good that can be produced given the production of the other good. **Explanation of the Diagram:** 1. **Possibility A:** 0 units of steel and 100 units of wheat. 2. **Possibility B:** 1 unit of steel and 90 units of wheat. 3. **Possibility C:** 2 units of steel and 75 units of wheat. 4. **Possibility D:** 3 units of steel and 55 units of wheat. 5. **Possibility E:** 4 units of steel and 30 units of wheat. 6. **Possibility F:** 5 units of steel and 0 units of wheat. **Opportunity Cost Analysis:** In moving stepwise from possibility A to B to C and so on to F, the opportunity cost of a unit of steel in terms of wheat can be calculated by observing the reduction in wheat production for each additional unit of steel produced. For example: - Moving from A to B, producing 1 additional unit of steel causes wheat production to decrease by 10 units (from 100 to 90). - Moving from B to C, producing another unit of steel reduces wheat production by 15 units (from 90 to 75). This analysis helps in understanding the trade-offs and opportunity costs involved in resource allocation for the production of steel and wheat.
Solution
Bartleby Expert
SEE SOLUTION
Knowledge Booster
Opportunity Cost
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