Assume the economy of Atlantis only produces fish (point F). Calculate the opportunity cost of producing potatoes in 200 pound increments.
To calculate the opportunity cost of producing potatoes (in terms of producing fish) you must calculate the change in quantity of fish produced as potato production is increased. For example, as potato production increases from 0 to 200 pounds, fish production decreases from 675 to 650 pounds. So the opportunity cost of producing the first 200 pounds of potatoes is 25 pounds of fish. Similarly when increasing potato production from 200 to 400 pounds, the result is a decrease in fish production from 650 to 600 pounds. Increasing potato production from 600 to 800 pounds results in a decrease in the production of fish from 500 to 300 pounds, or an opportunity cost of 200 pounds of fish.
Assume the economy of Atlantis only produces fish (point F). Calculate the opportunity cost of producing potatoes in 200 pound increments.