Assume that the table below describes the production possibilities confronting an economy. Using that information: a. Draw the production-possibilities curve. Be sure to label each alternative output combination (A through E). (Note: put # of convenience stores on the horizontal line) b. Calculate the opportunity cost of building the first convenience store. c. Calculate the opportunity cost of building the second convenience store. d. Why can’t more of both outputs be produced? Potential Output Combinations Convenience Stores Homeless Shelters A 0 10B 1 9C 2 7 D 3 4E 4 0
Assume that the table below describes the production possibilities confronting an economy. Using that information:
a. Draw the production-possibilities curve. Be sure to label each alternative output combination (A through E). (Note: put # of convenience stores on the horizontal line)
b. Calculate the
c. Calculate the opportunity cost of building the second convenience store. d. Why can’t more of both outputs be produced?
Potential Output Combinations Convenience Stores Homeless Shelters
A 0 10
B 1 9
C 2 7
D 3 4
E 4 0
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