WORK IT OUT Interactive step-by-step help with solving this problem can be found online. Draw a production possibility frontier with pota- toes on the horizontal axis and fish on the verti- 16. Atlantis is a small, isolated island in the South Atlantic. The inhabitants grow potatoes and catch 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. cal axis illustrating these options, showing points b. Can Atlantis produce 500 pounds of fish and S00 pounds of potatoes? Explain. Where would this point lie relative to the production possibility A-F. frontier? c. What is the opportunity cost of increasing the annual output of potatoes from 600 to 800 pounds? Maximum annual Quantity of potatoes (pounds) Quantity of fish (pounds) output options 1,000 d. What is the opportunity cost of increasing the annual output of potatoes from 200 to 400 pounds? B. 800 300 600 500 D. 400 600 e. Can you explain why the answers to parts c and d are not the same? What does this imply about the slope of the production possibility frontier? 200 650 675