If the economy were operating at point F (inside the PPC) O the opportunity cost of producing 20 additional units of food would be 30 units of clothing. the opportunity cost of acquiring 30 additional units of clothing would be 20 units of food. additional food could be produced at no opportunity cost in terms of sacrificed clothing. the opportunity cost of acquiring 20 additional units of food would be 40 units of clothing. additional clothing cannot be produced unless there is a technological advance or new resources are discovered.

If the economy were operating at point F (inside the PPC) O the opportunity cost of producing 20 additional units of food would be 30 units of clothing. the opportunity cost of acquiring 30 additional units of clothing would be 20 units of food. additional food could be produced at no opportunity cost in terms of sacrificed clothing. the opportunity cost of acquiring 20 additional units of food would be 40 units of clothing. additional clothing cannot be produced unless there is a technological advance or new resources are discovered.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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