Suppose that the economy of El Paso creates only cowboy boots and pecans. The production possibilities frontier (PPF) per year for El Paso is illustrated in the graph and is currently producing at the point labeled A. Move point B to show the economy efficiently producing one thousand more cowboy boots. Now, determine the opportunity cost of producing an additional 1,000 cowboy boots, i.e., moving from point A to point B. Enter your answer specified to one decimal place. opportunity cost: thousand pecans Move point C to indicate El Paso increasing production of cowboy boots from point B by another thousand. Quantity of cowboy boots produced (thousands) 5.0 5.0 4.0 3.0 1.0 4.0 2.0 0.0 0.0 1.0 2.0 3.0 4.0 A B 5.0 6.0 5.0 6.0 7.0 Quantity of pecans produced (thousands) Determine the opportunity cost of moving from point B to point C. Enter your answer specified to one decimal place. opportunity cost: thousand pecans This PPF exhibits what kind of opportunity costs? constant O increasing ○ decreasing
Suppose that the economy of El Paso creates only cowboy boots and pecans. The production possibilities frontier (PPF) per year for El Paso is illustrated in the graph and is currently producing at the point labeled A. Move point B to show the economy efficiently producing one thousand more cowboy boots. Now, determine the opportunity cost of producing an additional 1,000 cowboy boots, i.e., moving from point A to point B. Enter your answer specified to one decimal place. opportunity cost: thousand pecans Move point C to indicate El Paso increasing production of cowboy boots from point B by another thousand. Quantity of cowboy boots produced (thousands) 5.0 5.0 4.0 3.0 1.0 4.0 2.0 0.0 0.0 1.0 2.0 3.0 4.0 A B 5.0 6.0 5.0 6.0 7.0 Quantity of pecans produced (thousands) Determine the opportunity cost of moving from point B to point C. Enter your answer specified to one decimal place. opportunity cost: thousand pecans This PPF exhibits what kind of opportunity costs? constant O increasing ○ decreasing
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth
Section: Chapter Questions
Problem 9SQP
Related questions
Question
Transcribed Image Text:Suppose that the economy of El Paso creates only cowboy
boots and pecans. The production possibilities frontier (PPF)
per year for El Paso is illustrated in the graph and is currently
producing at the point labeled A.
Move point B to show the economy efficiently producing one
thousand more cowboy boots.
Now, determine the opportunity cost of producing an
additional 1,000 cowboy boots, i.e., moving from point A to
point B. Enter your answer specified to one decimal place.
opportunity cost:
thousand pecans
Move point C to indicate El Paso increasing production of
cowboy boots from point B by another thousand.
Quantity of cowboy boots produced (thousands)
5.0
5.0
4.0
3.0
1.0
4.0
2.0
0.0
0.0
1.0
2.0
3.0
4.0
A
B
5.0
6.0
5.0
6.0
7.0
Quantity of pecans produced (thousands)
Transcribed Image Text:Determine the opportunity cost of moving from point B to
point C. Enter your answer specified to one decimal place.
opportunity cost:
thousand pecans
This PPF exhibits what kind of opportunity costs?
constant
O increasing
○ decreasing
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