Assume that the following table describes the production possibilities frontier (PPF) confronting an economy. Using that information:
|
Potential Output Combinations
|
Homeless Shelters
|
Hospitals
|
|
A
|
10
|
0
|
|
B
|
9
|
1
|
|
C
|
7
|
2
|
|
D
|
4
|
3
|
|
E
|
0
|
4
|
What is the opportunity cost of producing a second unit of hospitals?
What is the opportunity cost of producing a fifth unit of homeless shelters?