Help IE inga Re ie TNormalTNo Spac Heading 1 Title Paragraph

Help IE inga Re ie TNormal?TNo Spac Heading 1 Title Paragraph weekly Assignment #1 Economics 2205 Principles of Macroeconomics An economy has the following Production Possibilities Schedule: Consumer Goods Producer Goods 0 150 230 290 330 350 500 400 300 200 100 0 sume the nation is currently producing 290 Consumer Goods and

Solution

Ans 290-230=60

300-200=100

So to get 100 producer goods we have to sacrifice 60 consumer goods. So cost of 1 producer good=60/100=0.6

And cost of 20 additional goods=20(0.6)=12

C since domestic cost of 40 goods is 0.6(40)=24 while it gets 30 for 40 from nation A, nation B should accept offer