A Production Possibilities Table for Two Products, Grain and Airplanes

question 57

Essay

A production possibilities table for two products, grain and airplanes, is found below.Usual assumptions regarding production possibilities are implied.Grain is measured in tons and airplanes are measured in units of 1,000.(a) Using the below graph construct a production possibilities curve from this information placing grain on the vertical axis and airplanes on the horizontal axis. (b) What is the opportunity cost of producing the first unit of airplanes? The marginal opportunity cost of producing the fourth unit of airplanes?

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Definitions:

Foundational Belief

Core convictions or assumptions that are deeply held and form the basis for an individual's worldview or philosophy.

Primitive Belief

A belief based on our own personal experience or from a credible authority.

Heuristic

A mental shortcut that allows people to solve problems and make judgments quickly and efficiently.

Self-Image

How an individual views themselves, which can be influenced by internal perceptions and external feedback, and is a component of self-concept.