Production Possibilities for Libraryland

Books	Magazines
400	0
300	200
200	350
100	450
0	500

What is the opportunity cost to Libraryland of increasing the production of books from 200 to 300

Which of the following statements is correct?

a) The opportunity cost of an additional 100 books is constant at 50 magazines

b) The opportunity cost of an additional 100 books is constant at 100 magazines

c) Libraryland's production possibilities frontier is a straight, downard-sloping line

d) The opportunity cost of an additional 100 books increases as more books are produced. How do you solve this?

Answer rating: 100% (QA)

i We can see from above Table that if we increase production of books from 200 to 300 we have to decrease production of Magazines from 350 to 200 Henc... View the full answer