Question

please answer this correct, the answers i have written are incorrect

A production possibilities table for DVDs and computers is shown below. Type of Production Computers DVDs Production Alternatives A B C D E 0 20 40 60 80 806547270 Instructions: Enter your answers as absolute and whole numbers. a. What is the opportunity cost of computers when moving from point A to point B? 0.6 DVDs b. What is the opportunity cost of computers when moving from point B to point C? 0.75 DVDs c. What is the opportunity cost of computers when moving from point C to point D? 115 DVDs d. What is the opportunity cost of computers when moving from point D to point E? 1.5 DVDS e. As we produce more computers, opportunity costs are increasing 3

Answer 1

Answer : a) At point A : 0 computers and 80 DVDs

At point B : 20 computers and 65 DVDs

Now, moving from point A to point B increases the production of computers by 20 and decreases the production of DVDs by 15. So, due to moving from point A to point B the opportunity cost of computers = 15 / 20 = 0.75 DVDs.

b) At point B : 20 computers and 65 DVDs

At point C : 40 computers and 47 DVDs

Now, moving from point B to point C increases the production of computers by 20 and decreases the production of DVDs by 18. So, due to moving from point B to point C the opportunity cost of computers = 18 / 20 = 0.9 DVDs.

c) At point C : 40 computers and 47 DVDs

At point D : 60 computers and 27 DVDs

Now, moving from point C to point D increases the production of computers by 20 and decreases the production of DVDs by 20. So, due to moving from point C to point D the opportunity cost of computers = 20 / 20 = 1 DVD.

d) At point D : 60 computers and 27 DVDs

At point E : 80 computers and 0 DVDs

Now, moving from point D to point E increases the production of computers by 20 and decreases the production of DVDs by 27. So, due to moving from point D to point E the opportunity cost of computers = 27 / 20 = 1.35 DVDs.

e) The answer is increasing,

Here we can see that the movement from one point to another point increases the production of computers but decreases the production of DVDs. As a result, the movement from one point to another point increases the opportunity cost.

Answer 2

a) 15 DVDs

b) 18 DVDs

c) 20 DVDs

d) 27 DVDs

e) increasing