Certainly! Here's a numeric university-style question about increasing opportunity cost:
Question:
A farmer has a fixed amount of land that can be used to grow either wheat or corn. The following table shows the possible combinations of wheat and corn that the farmer can produce.
Combination
Wheat (tons)
Corn (tons)
A
0
100
B
20
90
C
40
70
D
60
40
E
80
0
a. Plot the production possibilities curve (PPC) for the farmer's land using the data provided.
b. Calculate the opportunity cost of increasing wheat production from 20 tons to 40 tons.
c. Explain how the concept of increasing opportunity cost is illustrated by the PPC and the data in the table.
d. Discuss the implications of increasing opportunity cost for the farmer's decision-making in resource allocation.
Feel free to ask if you need more questions or further explanations! 😊📚
Certainly! Here's a numeric university-style question about increasing opportunity cost:
Question:
A farmer has a fixed amount of land that can be used to grow either wheat or corn. The following table shows the possible combinations of wheat and corn that the farmer can produce.
a. Plot the production possibilities curve (PPC) for the farmer's land using the data provided.
b. Calculate the opportunity cost of increasing wheat production from 20 tons to 40 tons.
c. Explain how the concept of increasing opportunity cost is illustrated by the PPC and the data in the table.
d. Discuss the implications of increasing opportunity cost for the farmer's decision-making in resource allocation.
Feel free to ask if you need more questions or further explanations! 😊📚