The Table Above Presents the Production Possibilities of Farmer Brown

question 328

Essay

The table above presents the production possibilities of Farmer Brown. Use these data to calculate Farmer Brownʹs opportunity cost of additional beef as Farmer Brown moves from point A to B to C to D. Also use the data to calculate Farmer Brownʹs opportunity cost of additional wheat as Farmer Brown moves from point D to C to B to A. Based on these costs, does Farmer Brown use resources that are more productive in one activity than the other? Explain your answer. $$\begin{array} { | l | l | l | l | } \hline \begin{array} { l } \text { Production } \\\text { point }\end{array} & \begin{array} { l } \text { Fish } \\\text { (pounds) }\end{array} && \begin{array} { l } \text { Berries } \\\text { (pounds) }\end{array} \\\hline A & 0 & \text { and } & 50 \\\hline B & 1 & \text { and } & 45 \\\hline C & 2 & \text { and } & 35 \\\hline D & 3 & \text { and } & 20 \\\hline E & 4 & \text { and } & 0 \\\hline\end{array}$$

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Definitions:

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