Please answer B C D and E Products CombA Comb B Comb c CombD

Products CombA Comb B Comb c CombD CombE CombF Lobsters Coconuts 0 35 2 2 23 15 Production Possibilities Curve 40 2 20 15 Lobsters

Solution

B)Opportunity cost is the second best alternate forgone. Or It is the number of unit of one good sacrificed in order to gain an additional unit of good 2.

Opportunity cost of 1 Lobster=4Coconut

C)opp. Cost of 1 lobster from E to f=15unit of Coconut.

D) All point inside the PPF will be attainable and will be inefficient.

E) All point outside the PPF will be unattainable but desirable.