Question
The following table shows the production possibilities of cooking oil for a country. Combination Palm oil (units) Soybean oil (units) A 0 10 B
The following table shows the production possibilities of cooking oil for a country. Combination Palm oil (units) Soybean oil (units) A 0 10 B 4 8 C 8 6 D 15 4 E 20 2 F 26 0 b) c) DO Draw the Production Possibility Curve (PPC) using graph paper. What is the opportunity cost of producing 15 units of palm oil? Calculate the opportunity cost if the country wants to increase the production of palm oil from 4 to 20 units. Calculate the opportunity cost from point C to F. What conclusion can be made if the country decides to produce 15 units of palm oil and 5 units of soybean oil?
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