Question

Atlantis is a small, isolated island in the South Atlantic. The inhabitants grow potatoes and catch fresh fish. The following QUantity of T11 Quantity of fish Maximum annual potatoes (pounds) (pounds) output options A. 1000 300 B00 600 600 400 650 200 675 y-Fish ro G00 203 s00 100 11ao X-Polatoes sa 300 400 580 16 The output combination consisting of 500 pounds of fish and 800 pounds of potatoes, a is possible but not efficient. With 800 pounds of potatoes Atlantis can produce more fish. b is not possible. With 500 pounds of fish, the most potatoes Atlantis can produce is 600 pounds. is the maximum of both products Atlantis can produce. d indicates that Atlantis if producing too much potato and too little fish 17 The opportunity cost of increasing the annual output of potatoes from 200 to 400 pounds is, a 650 pounds of fish. b 600 pounds of fish. c 100 pounds of fish. d 50 pounds of fish. 18 The opportunity cost of increasing the annual output of potatoes from 600 to 800 pounds is, a 500 pounds of fish. b 300 pounds of fish.

question 16

Answer 1

16).

A Production Possibility Frontier shows the different combination of “Fish” and “Potato” that Atlantis can produce given the available input and production technology. So, here given the PPF table for “500 pounds of fish” Atlantis can produce “600 pounds of potato” at point “C”. So, the correct answer is “B”.