Refer to the Information Provided in Scenario 4 Below to Answer

question 21

Essay

Refer to the information provided in Scenario 4 below to answer the questions that follow.
SCENARIO 4: Suppose that a state needs to build both prisons and schools with a budget limited to 10 million dollars. Schools cost $1 million each to build and prisons cost $2 million each to build.
-Refer to Scenario 4. Assume that the price of prison production falls to $1.5 million each. Draw the new production possibilities frontier. In addition, what is the new opportunity cost of producing one more prison?

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Exchange Rate

The value of one currency for the purpose of conversion to another.

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The legal money circulated within the United States, consisting primarily of dollars and cents.

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