Assume that the schedule below describes the production possibilities confronting an economy.

Question

Using the information from the table?

(a) Draw the production possibilities curve .be sure to label each alternative

output combination

(A through B)

(b) Calculate and illustrate on your graph the opportunity cost of producing

one CD player per week?

(c) What is the cost of producing a second CD player? What might account for

the differences?

(d) Which point on the curve is the most desired one? How will we find out?

Potential weekly pianos CD players

Output combinations

A 10 0

B 9 1

C 7 2

D 4 3

E 0 4

Answer 1