Question

po Consumer goods 2 3

Answer 1

Capital Consum Goods Goods er 40 36 30 16 0 0 14 18 20 a) Production Possibility Curve 48 40 36 32 28 30 Production Possibility 20 rve 12 4 16 32 b) Using the table above if 30 units of consumer goods are produced then 14 units of capital goods produced c) Approximately 35 units of consumer goods will be produced d) Total Cost of firs 14 capital goods - (40-30) 10 consumer goods e) At combination C) the cost of additional 6 consumer goods (14-8) 6 units of capital goods *We are supposed to do only these many sub- parts to a question. For solution to other parts please post as a different question mentioning the parts