Question

I need help with D,E,F,G thanks in advance

(Please only answer if you know)

2. . Use the data provided in the below table to construct a production possibilit A Type of Product Wine Beer Production Alteratives, in millions of bar B C I DE 2 6 I 8 12 9 5 0 0 14

Answer 1

D) at B, there are 2 QUANTITY of wine and 12 QUANTITY of beer is producing. So opportunity cost =change in beer /change in wine=2/2=1.

E) all points are on production possibilities curve are efficient.because ppf shows possible combination of two goods that can be produced by fully and efficient use of all resources.so every point on ppf shows that resources and technology are fully and efficiently using.

So point a,b,c,d,e are efficient point.

F)all point under ppf are inefficient , because at these point their can be possible more production of both goods ,so that why they are inefficient.

G) all point outside of ppf are unattainable because they can't be produced because resources are already in fully efficient use at ppf curve.

Cozoz 14A B beer 2 JE Wine