Compare the graphs you've created for Learning Activity 3 and 4 in the Learning Activities.

1.Examine the graph you've created for Learning Activity 3 and determine the opportunity cost of producing 25 more units of ag goods.

2.Does the answer to question #1 depend on whether you're increasing production of ag goods from zero to 25 or from 75 to 100?

3.Why or why not?

4.Examine the graph you've created for Learning Activity 4 above and determine the opportunity cost of producing 20 more units of pharmaceutical products.

5.Does the answer to question #4 depend on whether you're increasing production of pharmaceutical products from zero to 20 or from 20 to 40?

6.As we produce more and more pharmaceutical products, does the opportunity cost increase, decrease or remain the same?

7.What economic principle/law explains the answer to question #6?

8.Explain in your own words what this economic principle/law means.

9.Comparing the two graphs you created for Learning Activity 3 and 4, which do you suppose is the better model for what goes on in the real world?