-The Table Above Shows the Production Possibilities Frontier for the Nation

question 415

Essay

-The table above shows the production possibilities frontier for the nation of Isolanda.
a) Find the marginal cost of a pound of fish using the above PPF.
b) How does the marginal cost of a pound of fish change as more fish are caught?

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Definitions:

Disposable Income

Available financial merits for households towards spending and saving following income tax subtractions.

MPC

Marginal Propensity to Consume, which is the proportion of any additional income that is spent on consumption rather than being saved.

Savings

Money set aside typically in financial instruments, representing deferred consumption or for future use.

Disposable Income

The economic provision for households' saving and spending activities post income tax calculations.