Vuvuzela production(in thousands)Figure 6.8 A PPC showing opportunity costThey have traded off 4 bags of apples and they have gained 2 bags of potatoes.The opportunity cost of the 2 bags of potatoes is 4 bags of apples.y expanding this example to the greater society, the production possibilityurve clearly shows how a change in the production of one product can affect thetoroduction of another and the cost implications of that change.Activity 6: Illustrate opportunity cost on a PPCUse the production possibility curve of Vuvuzelaville to answer the questions that follow.1. What is the opportunity cost (in vuvuzelas or soccerballs) if there is a move from Point A to Point C?(1)200180 -2. What is the opportunity cost if there is a move from160-Point B to Point C?(1)140-3. What is the opportunity cost if there is a move from120 -Point D to Point B?(1)100 -80 -4. What is the opportunity cost if there is a move from60-Point C to Point A?40 -5. What is the opportunity cost if there is a move from20Point A to Point D?(1)0.10152025[5]Soccer balls (in thousands)Figure 6.9 Production possibility curve ofVuvuzellavilleUnit 2: Maximising satisfaction from limited resources

Name: Vuvuzela production(in thousands)Figure 6.8 A PPC showing opportunity
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Description: Vuvuzela production(in thousands)Figure 6.8 A PPC showing opportunity costThey have traded off 4 bags of apples and they have gained 2 bags of potatoes.The opportunity cost of the 2 bags of potatoes is 4 bags of apples.y expanding this example to th

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Question

Vuvuzela production
(in thousands)
Figure 6.8 A PPC showing opportunity cost
They have traded off 4 bags of apples and they have gained 2 bags of potatoes.
The opportunity cost of the 2 bags of potatoes is 4 bags of apples.
y expanding this example to the greater society, the production possibility
urve clearly shows how a change in the production of one product can affect the
to
roduction of another and the cost implications of that change.
Activity 6: Illustrate opportunity cost on a PPC
Use the production possibility curve of Vuvuzelaville to answer the questions that follow.
1. What is the opportunity cost (in vuvuzelas or soccer
balls) if there is a move from Point A to Point C?
(1)
200
180 -
2. What is the opportunity cost if there is a move from
160-
Point B to Point C?
(1)
140-
3. What is the opportunity cost if there is a move from
120 -
Point D to Point B?
(1)
100 -
80 -
4. What is the opportunity cost if there is a move from
60-
Point C to Point A?
40 -
5. What is the opportunity cost if there is a move from
20
Point A to Point D?
(1)
0.
10
15
20
25
[5]
Soccer balls (in thousands)
Figure 6.9 Production possibility curve of
Vuvuzellaville
Unit 2: Maximising satisfaction from limited resources

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