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
  • SEE MORE 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