Suppose that the economy of El Paso creates only cowboy
Eboots and pecans. The production possibilities frontier (PPF)
Sper year for El Paso is illustrated in the graph and is currently
producing at the point labeled A.
Move point B to show the economy efficiently producing one
thousand more cowboy boots.
Now, determine the opportunity cost of producing an
additional 1,000 cowboy boots, i.e., shifting from point A to
point B. Enter your answer specified to one decimal place.
opportunity cost:
3273
pecans
Shift point C to indicate El Paso increasing production of
cowboy boots from point B by another thousand.
Determine the opportunity cost of shifting from point B to
point C. Enter your answer specified to one decimal place.
opportunity cost: 3000
pecans
5,000
1,000
Quantity of cowboy boots produced
3273
2.000 3000
2,000
,000
0
0
2000
1,000
B
3020
O
>
5000
2,000 3,000 4,000 5,000 6,000 7,000
Quantity of pecans produced
