The following table displays the production possibilities of Brazil at a particular point in time. For simplicity, we are assuming that Brazil only produces two goods: lumber (logs) and steel. Each letter represents a different combination of logs and steel that can be produced with available resources. Possibility A B C D E F Logs (thousands) 0 1500 3000 4500 6000 7500 Steel (tons) 12000 11000 9500 7000 4000 0 The opportunity cost of moving from production possibility E to production possibility C is: 3,000 logs This cannot be determined from the information provided in the question. 5,500 tons of steel 6,000 logs
The following table displays the production possibilities of Brazil at a particular point in time. For simplicity, we are assuming that Brazil only produces two goods: lumber (logs) and steel. Each letter represents a different combination of logs and steel that can be produced with available resources. Possibility A B C D E F Logs (thousands) 0 1500 3000 4500 6000 7500 Steel (tons) 12000 11000 9500 7000 4000 0 The opportunity cost of moving from production possibility E to production possibility C is: 3,000 logs This cannot be determined from the information provided in the question. 5,500 tons of steel 6,000 logs
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The following table displays the production possibilities of Brazil at a particular point in time. For
simplicity, we are assuming that Brazil only produces two goods: lumber (logs) and steel. Each
letter represents a different combination of logs and steel that can be produced with available
resources.
Possibility
A
B
C
D
E
F
Logs
(thousands)
0
1500
3000
4500
6000
7500
Steel
(tons)
12000
11000
9500
7000
4000
0
The opportunity cost of moving from production possibility E to production possibility C is:
3,000 logs
This cannot be determined from the information provided in the question.
O 5,500 tons of steel
6,000 logs
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