(Solved): The following graph shows the production possibilities curve (PPC) of an economy that produces food ...

The following graph shows the production possibilities curve (PPC) of an economy that produces food and oil. The black points (plus symbols) represent three possible output levels in a given month. You can click on the points to see their exact coordinates. Suppose the economy initially produces 6 million pounds of food and 200 million barrels of oil, which is represented by point A. The opportunity cost of producing an additional 2 million pounds of food (that is, moving production to point B) is barrels of oil. Suppose, instead, that the economy currently produces 168 million barrels of oil and 8 million pounds of food, which is represented by point B. Now the opportunity cost of producing an additional 2 million pounds of food (that is, moving to point $\mathrm{C}$ ) is barrels of oil. Comparing your answers in the two previous paragraphs, you can see that the opportunity cost of 2 million additional pounds of food at point B is the opportunity cost of 2 million additional pounds of food at point $\mathrm{A}$. This reflects the Suppose the economy initially produces 6 million pounds of food and 200 million barrels of oil, which is represented by point A. The opportunity cost of producing an additional 2 million pounds of food (that is, moving production to point B) is barrels of oil. Suppose, instead, that the economy currently produces 168 million barrels of oil and 8 mil 24 million ff food, which is represented by point B. Now the opportunity cost of producing an additional 2 million pounds of food (that is, moving to 32 million barrels of oil. Comparing your answers in the two previous paragraphs, you can see that the opportunity 40 million Ilion additional pounds of food at point $B$ is the opportunity cost of 2 million additional pounds of food at point $A$. 48 million 60 million Suppose the economy initially produces 6 million pounds of food and 200 million barrels of oil, which is producing an additional 2 million pounds of food (that is, moving production to point B) is Suppose, instead, that the economy currently produces 168 million barrels of oil and 8 million pounds the opportunity cost of producing an additional 2 million pounds of food (that is, moving to point $\mathrm{C}$ ) is 24 million 32 million 40 million by point $A$. The opportunity cost of \begin{tabular}{|} 48 million \\ 60 million \end{tabular} h is represented by point $B$. Now barrels of oil. Comparing your answers in the two previous paragraphs, you can see that the opportunity cost of 2 million additional pounds of food at point B is the opportunity cost of 2 million additional pounds of food at point A. This reflects the Suppose the economy initially produces 6 million pounds of food and 200 million barrels of oil, which is represented by point A. The opportunity cost of producing an additional 2 million pounds of food (that is, moving production to point B) is barrels of oil. 1, that the economy currently produces 168 million barrels of oil and 8 million pounds of food, which is represented by point B. Now cost of producing an additional 2 million pounds of food (that is, moving to point $\mathrm{C}$ ) is barrels of oil. answers in the two previous paragraphs, you can see that the opportunity cost of 2 million additional pounds of food at point B is the opportunity cost of 2 million additional pounds of food at point $A$. This reflects the Suppose the economy initially produces 6 million pounds of food and 200 million barrels of oil, which is represented by point A. The opportunity cost of producing an additional 2 million pounds of food (that is, moving production to point B) is barrels of oil. r produces 168 million barrels of oil and 8 million pounds of food, which is represented by point B. Now al 2 million pounds of food (that is, moving to point C) is barrels of oil. paragraphs, you can see that the opportunity cost of 2 million additional pounds of food at point B is million additional pounds of food at point $A$. This reflects the