Below is a production possibilities table for consumer goods (automobiles), x and capital goods (forklifts), y:
A(0,30), B(2,27), C(4,21), D(6,12), E(8,0)
If the economy is at point C, what is the cost of one more automobile?
_____ Forklifts (round your answer below to one decimal place)
Of one more forklift? ------ automobiles (round your answer below to two decimal places.)
Explain how the production possibilities curve reflects the law of increasing opportunity costs.
A(0,30), B(2,27), C(4,21), D(6,12), E(8,0)
If the economy is at point C, what is the cost of one more automobile?
_____ Forklifts (round your answer below to one decimal place)
Of one more forklift? ------ automobiles (round your answer below to two decimal places.)
Explain how the production possibilities curve reflects the law of increasing opportunity costs.