Production Possibilities and Opportunity Cost In the graph below, the production possibilities curve represents the maximum output of two products, corn an

Production Possibilities and Opportunity Cost In the graph below, the production possibilities curve represents the maximum output of two products, corn and alfalfa, which can be produced by a small nation. Use the information presented in this graph to respond to the 5 inquiries below. Economics Assessment: Production Possibilities and Opportunity Cost
In the graph below, the production possibilities curve represents the maximum output of two products,
corn and alfalfa, which can be produced by a small nation. Use the information presented in this graph
to respond to the 5 inquiries below.
Students need to download this Word file and save it with the following file name format:
Assessment-Last name-First name-Course and section number-Semester and year
(Example: Assessment-Smith-Jane-Econ 2301 83___-Spring 2019)
The completed assessment must be submitted to your instructor via email as a Word attachment. This
assessment is worth 50 points and is due no later than __________.
Corn (tons)
A
20
B
H
18
C
14
F
D
8
G
E
0
3
6
9
12
Alfalfa (tons)
1. Explain what each individual point (A through H) on the graph represents. In your explanation,
specify why each point is efficient, inefficient, or unattainable.
2. Fill in the opportunity costs in the following table:
When moving from points:
A to B
B to C
C to D
D to E
F to B
G to D
…the opportunity cost is:
3. Explain why the production possibilities curve is bowed outward, or concave.
4. From the information shown in the graph, can you determine which point represents the
optimal production combination for this nation? Explain why or why not.
5. Over time, the production possibilities curve can shift. Explain what may cause the curve to shift
outward (to the right) or inward (to the left). What would each of these shifts represent for the
economy?

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