Question: help to ans Production Possibilities __ - ___ ___15 Table l The table above gives the production possibilities frontier for a nation that produces trucks

 help to ans Production Possibilities __ - ___ ___15 Table l

help to ans

The table above gives the production possibilities frontier for a nation that

Production Possibilities __ - ___ ___15 Table l The table above gives the production possibilities frontier for a nation that produces trucks and boats. (a) Identify the opportunity cost of producing one truck and one boat for every points of productions. ( 10 marks) Answer: Opportunity cost of Opportunity cost of Possibilities I-roducin one boat uroducin- one truck Possibilities -__ (b) If the production of boats increases its production, the production of trucks must decrease. Why? (2 marks) (Total: 12 marks}

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