Question 1. Draw a PPC Graph based on the following table.
|
Production Options
|
Tractor Output
|
Tank output
|
|
A
|
15
|
0
|
|
B
|
12
|
6
|
|
C
|
9
|
9
|
|
D
|
6
|
11.4
|
|
E
|
3
|
13.5
|
|
|
|
15
|
a. what is the opportunity cost of increasing Tank production from 0 to 9?
b. what is the opportunity cost to increase Tractor production from 3 to 12?
c. draw a production point option Y that show the incomplete use of available resources.
Question 2. Graphically display an Increasing Production Possibilities Curve and identify two reasons that cause the curve to shift?