A nation with fixed quantities of resources is able to produce any of the following combinations of bread and ovens: Bread (tons) Oven (000’s) 60 0 50 12 40 22 30 30 20 36 10 40 0 42 These figures assume that a certain number of previously produced ovens are available in the current period for baking bread. a. Using data in the table, graph the ppf (with ovens on the vertical axis) b. What happens to the opportunity cost of bread – measured in number of ovens—as bread production increases from 0 to 10 tons, from 10 to 20 tons, from 20 to 30 tons, and so on? c. If this country chooses to produce both bread and ovens, what will happen to the ppf over time? Why?
A nation with fixed quantities of resources is able to produce any of the following combinations of bread and ovens:
Bread (tons) Oven (000’s)
60 0
50 12
40 22
30 30
20 36
10 40
0 42
These figures assume that a certain number of previously produced ovens are available in the current period for baking bread.
a. Using data in the table, graph the
b. What happens to the
c. If this country chooses to produce both bread and ovens, what will happen to the ppf over time? Why?
Select one:
a. Remains stagnant
b. Decline over time towards inefficiency
c. Increase over time and decline
d. Increase over time towards growth
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