Below Is the Production Possibilities Table for the Country of Lavaland

question 7

Essay

Below is the production possibilities table for the country of Lavaland. $$\begin{array} { c c c c c } \begin{array} { c } \% \text { resources } \\\text { devoted to } \\\text { production } \\\text { of tanks }\end{array} & \text { Number of tanks } & \begin{array} { c } \% \text { resources } \\\text { devoted to } \\\text { production } \\\text { of pizza }\end{array} & \text { Number of pizzas } &Row \\0 & 0 & 100 & 15 & \mathrm {~A} \\20 & 4 & 80 & 14 & \mathrm {~B} \\40 & 7 & 60 & 12 & \mathrm {~C} \\60 & 9 & 40 & 9 & \mathrm { D } \\80 & 11 & 20 & 5 & \mathrm { E } \\100 & 12 & 0 & 0 & \mathrm { F } \\\end{array}$$ (a) Use the information in the table to draw the production possibilities curve (PPC) for Lavaland.Put tanks on the horizontal axis.
(b) What is the cost to Lavaland of moving from point A to point B on its PPC? And of moving from point E to point F?
(c) What general economic principle is being illustrated by your answers to part (b) above? Explain.

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