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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
The following data show the production possibilities for a hypothetical economy during one year

a. Plot these points on a graph. Do they appear to lie along a straight line? What is that straight line’s production possibility frontier?
b. Explain why output levels of X = 400, Y = 200 or X = 300, Y =300 are inefficient. Show these output =levels on your graph.
c. Explain why output levels of X = 500, Y = 350 are unattainable in this economy.
d. What is the opportunity cost of an additional unit of X output in terms of Y output in this economy? Does this opportunity cost depend on the amounts being produced?
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