To evaluate: The
Explanation of Solution
PPC: The full of PPP is
As per the given graph, it can be said that:
Point A: If 4 tables are produced then there is no wood left to produce bookshelves.
Point B: If 3 tables are produced then 4 bookshelves can also be produced with the available wood.
Point C: If 1 tables are produced then 7 bookshelves can also be produced with the available wood.
Point D: If 8 bookshelves can also be produced then there is no wood left to produce tables.
This means that if 7 bookshelves are produced then instead of 4 tables only 1 table can be produced with the available wood. Thus, the opportunity cost of producing 7 bookshelves is 3 tables.
Chapter 1 Solutions
Economics Today and Tomorrow, Student Edition
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