Chapter 2, Problem 16P

To determine

(a) A production possibility frontier for potatoes and fish

(b) Whether Atlantis can produce 500 pounds of fish and 800 pounds of potatoes

(c) Opportunity cost of increasing the annual output of potatoes from 600 to 800 pounds, (d) opportunity cost of increasing the annual output of potatoes from 200 to 400 pounds (e) the reason of difference in answer of (c) and (d).

Concept Introduction

Production Possibility Frontier:

A Production Possibility Frontier Curve shows the maximum production that is possible to achieve for the two goods. It assumes that all the inputs provided to achieve this level of production have been utilized efficiently.