Question

Step 1 View the table.

Carefully read the following table showing the production data for cars and bicycles:

Possibility	Cars (hundreds)	Bicycles (hundreds)
A	15	0
B	11	5
C	8	7
D	5	9
E	0	11

Step 2 Use the table to answer questions.

Using the table provided in Step 1, answer the following questions in a one-page (250-word) document:

• Determine the opportunity cost of additional production at different outputs. you can just list it as possibilities A,B, C, D, and E
• Determine which particular combination(s) is most efficient.
• Identify a combination that is inefficient (Free Lunch).
• What are the components of an attainable allocation?
• What are the conditions for economic growth, where an economy can produce more cars and bicycles?

Answer 1

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