Draw a production possibilities curve based on Table 1.1, labeling combinations A-F. What is the opportunity cost
Question:
Draw a production possibilities curve based on Table 1.1, labeling combinations A-F. What is the opportunity cost of increasing missile production?
TABLE A.1 Hypothetical Relationship of Grades to Study Time
These data suggest that grades improve with increased study time.
Study time (Hours per Week) Grade Point Average
16 ...................................................................... 4.0 (A)
14 ..................................................................... 3.5 (B+)
12 ........................................................................ 3.0 (B)
10 ..................................................................... 2.5 (C+)
8 ........................................................................ 2.0 (C)
4 ........................................................................ 1.0 (D)
2 ....................................................................... 0.5 (F+)
0 ........................................................................... 0 (F)
(a) From 0 to 50?
(b) From 50 to 100?
Opportunity CostOpportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...
Step by Step Answer:
a 10 houses b 15 houses Explanation a The opportunity cost of increasing the product...View the full answer
