An economy has the following Production Possibilities Schedule:
Consumer Goods Producer Goods
0 500
150 400
230 300
290 200
330 100
350 0
Assume the nation is currently producing 290 Consumer Goods and 200 Producer Goods. What is the cost of 10 additional Consumer Goods?
Assume the nation is currently producing 290 Consumer Goods and 200 Producer Goods. What is the cost of 20 additional Producer Goods?
Assume the nation is currently producing 290 Consumer Goods and 200 Producer Goods. Another nation (Nation A) approaches this nation (Nation B) and offers to buy 40 units of Producer Goods. This means Nation B will have to increase production of Producer Goods by 40 to 240. Nation A has offered to trade 30 Consumer Goods for the 40 Producer Goods. Should Nation B accept the offer and produce the additional Producer Goods for Nation A?
