Given the production possibility table, draw the production possibility curve and illustrate the principle of increasing opportunity cost.
The table below is a production possibility table for the fictional country of Myopia. Use it to construct the corresponding production possibility curve.
a. From your curve what values do you get for A and B in the table below?
b. Elucidate the meaning of a production possibilities curve.
c. Illustrate what is assumed to be constant when we draw that curve?
d. How is a point on the curve different from (1) a point below the curve and (2) a point above the curve?
e. How does this curve illustrate the concept of opportunity cost?
f. How does it illustrate the principle of increasing opportunity cost?