Suppose the following data reflect the production possibilities for providing health care and education: (a) Graph the

Question:

Suppose the following data reflect the production possibilities for providing health care and education:

Units per Year Health Care 400 370 330 270 190 20 100 Education 40 50 0 70 80

(a) Graph the production possibilities curve.
(b) If maximum health care is provided, how much education will be provided?
(c) What is the opportunity cost of increasing health care from 190 to 270 units?

Opportunity Cost
Opportunity 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,...