Experienced Web Developer
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- Jul 12, 2010
- Sythe Gold
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Hi,
I know how to do production possibility curves, but for some reason I can't do this question. I must be over-thinking it, because I can't remember what to do and what the land (acres) has to do with it...
#1: A farmer owns 500 acres of land any part of which he can devote either to growing corn or raising cattle. The following schedule shows the output which can be produced on different quantities of land,
Land (Acres)................Corn (100s of Bushels)...............Cattle (Head)
100............................30..........................................35
200............................55..........................................70
300............................75..........................................90
400............................90..........................................105
500............................105........................................115
a) Draw the PPC between cattle and corn.
b) Is the opportunity cost of the 100th head of cattle greater than, equal to, or less than one?
I know how to do production possibility curves, but for some reason I can't do this question. I must be over-thinking it, because I can't remember what to do and what the land (acres) has to do with it...
#1: A farmer owns 500 acres of land any part of which he can devote either to growing corn or raising cattle. The following schedule shows the output which can be produced on different quantities of land,
Land (Acres)................Corn (100s of Bushels)...............Cattle (Head)
100............................30..........................................35
200............................55..........................................70
300............................75..........................................90
400............................90..........................................105
500............................105........................................115
a) Draw the PPC between cattle and corn.
b) Is the opportunity cost of the 100th head of cattle greater than, equal to, or less than one?
