If the economy is at point C, what is the cost of one more automobile? Of one more forklift? Explain how the production possibilities curve reflects the law of increasing opportunity costs.

Respuesta :

Answer:

A) At point C, 2 automobiles will equal 9 forklifts. Therefore, an extra automobile would cost 4 and a half forklifts.

B) Also, because 6 forklifts equal 2 automobiles,  an additional forklift would cost 1/3 automobiles

 

Explanation:

It only costs 3 forklifts to manufacture the first two cars; the next pair comes at a cost of 6 forklifts. Therefore, it will cost a dozen forklifts to manufacture the last 2 automobiles. This demonstrates that every extra car produced comes at a greater cost than the one before.

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The production possibility curves.

The PPC is a possibility frontier and refers to the boundary that shows the transformation of the curves in the frontier and can show us the various combinations that can be made within the given resource and technology. The allocation efficiency, economies of scale, and opportunity costs can be shown by the PPF.

This the answer to points C, 2 automobiles will equal 9 forklifts, and due to 6 forklifts equal 2 automobiles.

  • The economy is shown at point C thus the cost of the vehicle will be different the PPC or the PPF will have a normal budge outwards from the origin but can be dropping downwards in a linear way.
  • Thus frost point of C, 2 automobiles will equal 9 forklifts. Hence the extra automobile would cost 4 and will be half forklifts. Secondly due to the 6 forklifts being equal to 2 automobiles,  an additional forklift cost 1/3 automobiles.

Learn more about the production possibilities curve.

brainly.com/question/2622768.