# Question

Atlantis is a small, isolated island in the South Atlantic. The inhabitants grow potatoes and catch fresh fish. The accompanying table shows the maximum annual output combinations of potatoes and fish that can be produced. Obviously, given their limited resources and available technology, as they use more of their resources for potato production, there are fewer resources available for catching fish.

a. Examine the Maximum annual output options table above and the resulting Production Possibility Frontier Graph below and answer parts b - f.

b. Can Atlantis produce 500 pounds of fish and 800 pounds of potatoes? Explain.

c. What is the opportunity cost of increasing the annual output of potatoes from 600 to 800 pounds?

d. What is the opportunity cost of increasing the annual output of potatoes from 200 to 400 pounds?

e. Can you explain why the answers to parts c and d are not the same?

f. What does this imply about the slope of the production possibilityfrontier?

a. Examine the Maximum annual output options table above and the resulting Production Possibility Frontier Graph below and answer parts b - f.

b. Can Atlantis produce 500 pounds of fish and 800 pounds of potatoes? Explain.

c. What is the opportunity cost of increasing the annual output of potatoes from 600 to 800 pounds?

d. What is the opportunity cost of increasing the annual output of potatoes from 200 to 400 pounds?

e. Can you explain why the answers to parts c and d are not the same?

f. What does this imply about the slope of the production possibilityfrontier?

## Answer to relevant Questions

Prove that any set of n+1 vectors in R^n is linearly dependent.A tank with capacity of 900 gal of water originally contains 500 gal of water with 100 lb of salt in solution. Water containing 1 lb of salt per gallon is entering at a rate of 3 gal/ min, and the mixture is allowed to flow ...You are the manager for Dunkin Donuts and know the following elasticities:η= 1.5 η I = 1.2 η xy1 = 0.5 η xy2 = -0.5η is the price elasticity of demand for Dunkin Donuts (DD) glazed doughnuts, ηxy1 is the cross ...Is secularization essential to development? Be sure to show you know what secularization is? The two sides of the debate about if it is or is not essential to development. After doing that, you will explain why you believe ...Suppose there are 1000 identical wheat farmers. For each, TC = 10 + q2. Market demand is Q = 600,000 - 100p. Derive the short-run equilibrium Q, q, and p. Does the typical firm earn a short- run profit?Post your question

0