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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?

Business Economics, Economics

  • Category:- Business Economics
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