Problems
10. The following diagram shows the production possibilities
boundary for Arcticland, a country that produces only two goods,
ice and fish. Labour is the only factor of production. Recall that a
linear production possibilities boundary reflects constant
opportunity costs for both products.a. Beginning at any point on Arcticland’s production
possibilities boundary, what is the opportunity cost of
producing 100 more tonnes of ice?
b. Beginning at any point on Arcticland’s production
possibilities boundary, what is the opportunity cost of
producing 10 more tonnes of fish?
11. The following table shows the production of wheat and corn in
Brazil and Mexico. Assume that both countries have one million